Payday Super is now in force. From 1 July 2026, employers must pay super guarantee contributions on every payday — at the same time as salary and wages — instead of quarterly. This is the biggest change to superannuation payment timing in decades, and it comes with new definitions, new reporting requirements and much tougher penalties. This guide explains exactly what your business must do to stay compliant.
The legislation — the Treasury Laws Amendment (Payday Superannuation) Bill 2025, which received Royal Assent on 6 November 2025 — affects every employer in Australia. There are no small-business exemptions, and the rules apply from day one regardless of whether your payroll software is fully ready. Here is what you need to know.
The new employer obligations at a glance
The core shift is simple: super is now linked to payday, not to the quarter. The table below summarises how each obligation changes.
| Obligation | Old rule (quarterly) | New rule (Payday Super) |
|---|---|---|
| Payment timing | Pay super at least quarterly, by the 28th of the month after each quarter | Pay super at the same time as salary and wages, on every payday |
| Payment deadline | Quarterly due dates (28 Oct, 28 Jan, 28 Apr, 28 Jul) | Contribution must be received by the employee’s fund within 7 business days of payday |
| Calculation base | Ordinary time earnings (OTE) | Qualifying earnings (QE) — a new, broader definition |
| Rate | 12% SG rate | Still 12%, now applied to QE |
| STP reporting | Report salary and wages per pay event | Must also report year-to-date qualifying earnings and year-to-date super liability for every pay event |
| Charge for late payment | Super guarantee charge, self-assessed by employer | New SGC assessed by the ATO — not self-reported |
One immediate consequence: the ATO’s Small Business Superannuation Clearing House closed permanently on 30 June 2026. If you were paying super through the clearing house, you already need another payment solution in place.
What counts as “qualifying earnings”
“Qualifying earnings” (QE) is the new calculation base for the super guarantee, replacing ordinary time earnings (OTE). QE is broader than OTE — it includes everything OTE covered, plus additional items such as all commissions and certain salary sacrifice amounts.
For most employees, the super amount you owe is roughly the same as before, because QE and OTE overlap heavily. But the differences matter for payroll configuration — your payroll system needs to compute QE per pay event, not OTE per quarter.
| Payment type | Included in OTE | Included in QE |
|---|---|---|
| Ordinary hourly wages / salary | Yes | Yes |
| Shift loadings and allowances paid for ordinary hours | Yes | Yes |
| Bonuses and commissions (all types) | Often no | Yes — all commissions now included |
| Certain salary sacrifice amounts | No | Yes |
| Overtime paid at overtime rates | No | No |
The rate remains 12% of QE. To put that in concrete terms: an employee on the national minimum wage of $26.44 per hour (38 hours = $1,004.90 per week from 1 July 2026) accrues $120.59 per week in super. You can check super amounts for any salary with our super calculator, and model salary-sacrifice arrangements with the salary sacrifice calculator.
Deadlines that matter
7 business days from payday
The contribution must be received by the employee’s super fund within 7 business days of payday. Note that this means received by the fund — not just sent by you or by your payroll provider. Allow processing time in your payment workflow. An extended timeframe can apply in some limited cases, such as for new employees whose fund details are still being set up.
Once received, super funds have 3 business days to allocate the contribution to the member’s account or return it.
Worked example: fortnightly payroll
Say your business pays fortnightly on Fridays. For the pay date of Friday 17 July 2026:
- 17 July (payday): salary and wages paid; 12% of QE calculated for each employee.
- By 28 July 2026: contributions must be received by each employee’s super fund (7 business days: 20, 21, 22, 23, 24, 27, 28 July).
- By 31 July 2026: fund allocates the contribution to the member (3 business days from receipt).
Every fortnightly payday repeats this cycle. Late by even one day and you have missed the deadline for that pay event.
STP finalisation: 14 July each year
Employers must finalise Single Touch Payroll reporting by 14 July after each financial year ends. For the year ending 30 June 2027, that means finalising by 14 July 2027.
The 28-day quarter rule
Even though super is now paid on payday, the quarter still matters for enforcement. Under the ATO’s Practical Compliance Guideline PCG 2026/1, employers with super still unpaid 28 days after the end of the quarter are a compliance priority. In practice: fix errors fast, because the ATO is watching the quarter-end mark closely.
Penalties for getting it wrong
Payday Super replaces the old self-assessed super guarantee charge with a new SGC assessed by the ATO itself. This is a significant shift — you no longer calculate and report your own shortfall; the ATO determines it from your STP data.
The new charge includes:
- A 60% administrative uplift on the shortfall amount — so a $1,000 shortfall attracts an additional $600 on top, before interest.
- Daily compounding interest on the amount owed, accruing until it is paid.
Because STP now reports year-to-date QE and year-to-date super liability for every pay event, the ATO can identify shortfalls automatically and in near real time. From 1 July 2027, STP reports that are missing the required QE and liability fields will be rejected outright, and penalties may apply for non-compliant reporting.
One unchanged but important rule: directors can be personally liable for unpaid super through director penalty notices. Company directors should treat super compliance as a personal risk, not just a payroll task.
Getting ready checklist
If your business is not yet fully compliant, work through this checklist now:
- Confirm payroll software readiness. Your payroll system must calculate 12% of qualifying earnings per pay event, pay contributions on payday, and report year-to-date QE and year-to-date super liability through STP. Contact your provider and ask specifically about Payday Super support — compliance applies regardless of your provider’s readiness.
- Replace the clearing house. The Small Business Superannuation Clearing House closed on 30 June 2026. If you used it, you need a commercial clearing house or direct super fund payment solution now.
- Verify member details. With payment due within 7 business days of every payday, incorrect fund details or stapled-fund issues cause instant lateness. Verify every employee’s chosen fund and TFN status before payday.
- Build an error-resolution process. Under PCG 2026/1, the ATO will not focus on employers who genuinely try to pay on each payday and fix errors quickly. Document your process: who checks payment receipts, how failed contributions are re-routed, and how fast corrections go out.
- Review salary sacrifice and commission arrangements. Because QE now includes all commissions and certain salary sacrifice amounts, check that these are captured in your payroll configuration.
- Brief your directors. Make sure directors understand they can be personally liable for unpaid super.
- Budget for cash flow. Super now leaves your account on payday rather than quarterly. For a business with a monthly payroll, that means twelve payment cycles a year instead of four lump sums — plan your cash flow accordingly.
Frequently asked questions
Does Payday Super apply to my small business?
Yes. There are no small-business exemptions — the rules apply to all employers from 1 July 2026, whether you have one employee or one thousand. The only change relevant to small businesses is that the ATO’s Small Business Superannuation Clearing House closed on 30 June 2026, so you need another payment solution.
What if my payroll software isn’t ready for Payday Super?
You are still required to comply from day one. The first-year leniency in PCG 2026/1 helps employers who are genuinely trying to pay on each payday and fixing errors quickly — it is not an exemption. Contact your payroll provider immediately for their Payday Super update, and put a manual process in place in the meantime.
What happens if a super contribution arrives late?
A late contribution triggers the new super guarantee charge, assessed by the ATO. It includes a 60% administrative uplift on the shortfall plus daily compounding interest. Paying the contribution late does not erase the charge — the charge is additional. Fix errors as fast as possible: employers with super still unpaid 28 days after the quarter ends are an ATO compliance priority.
Does Payday Super change how much super employees receive?
Not in most cases. The rate is still 12%, and for most employees qualifying earnings is roughly the same as ordinary time earnings, so the dollar amount is about the same. The change is about timing: employees receive their super on payday instead of quarterly, so it starts earning investment returns sooner. For example, an employee earning $80,000 a year still accrues roughly the same annual super — it just arrives in smaller, more frequent instalments.
Do the rules change for casuals, part-timers or contractors?
SG applies to all employee types — full-time, part-time and casual — on every payday. Employees under 18 working less than 30 hours per week are generally exempt. Some contractors paid wholly or principally for their labour are also covered by the guarantee. Check each worker’s classification with the ATO’s employee/contractor guidance if you are unsure.
Where can I get official guidance?
The Australian Taxation Office is the authority: ato.gov.au publishes the Payday Super guidance, the PCG 2026/1 compliance guideline, and employer STP reporting specifications. Treat ATO material as your single source of truth for rates, deadlines and definitions.
Conclusion
Payday Super changes when you pay super, how it is calculated, and what happens when you get it wrong. The essentials: 12% of qualifying earnings, paid on every payday, received by the fund within 7 business days, reported through STP with year-to-date QE and liability figures, and backed by an ATO-assessed charge with a 60% uplift and daily compounding interest for shortfalls.
The businesses that will find this transition painless are the ones whose payroll software is configured, whose fund details are verified, and whose error-resolution process is fast. If you are unsure about your super amounts, run your payroll figures through our super calculator and check the official guidance at ato.gov.au — then make every payday a super payday.