Payday Super is coming.
From 1 July 2026, employers will need to pay super at the same time as each payroll, with contributions reaching employees’ super funds within 7 business days of payday. Super will also be calculated on a new earnings base called “qualifying earnings”, which replaces the current ordinary time earnings approach for Super Guarantee (SG) calculations. If you currently use the ATO Small Business Superannuation Clearing House, you’ll also need to transition to another payment method before it closes on 1 July 2026.
Now is the time to review payroll systems and super processes so you’re ready well before the change takes effect.
What is changing?
Super will need to be paid on payday, at the same time as wages — rather than quarterly.
Key points:
- Super will be calculated at 12% of “Qualifying Earnings (QE)”, a new term that includes ordinary times earnings, bonuses, commission, salary sacrificed amounts and earnings paid to labour hire contractors. For most employers this new term will not change the amount of SG you are paying.
- Super must be received by the employee’s super fund within 7 business days of payday.
- This replaces the current quarterly payment system.
Why this matters
The changes significantly increase the frequency and timing of super payments. Employers will need payroll systems and cash flow processes that can support this.
Penalties and compliance
If super is not paid on time:
- The Super Guarantee Charge (SGC) will apply if payments aren’t received within 7 business days of payday.
- Interest will compound daily at the general interest charge rate.
- Penalties of 25% or 50% of the unpaid SGC may apply, depending on prior history.
- Unlike the current rules, SGC will be tax deductible.
- SGC will be assessed by the ATO, rather than self assessed.
Payroll and reporting changes
- Single Touch Payroll (STP) will need to report both Qualifying Earnings and super liability.
- SuperStream standards will be updated to allow faster payments and improved error messaging.
- New tools will help employers verify employee fund details and receive early notice of fund changes (such as mergers).
Small Business Superannuation Clearing House
- Closed to new users from 1 October 2025.
- Existing users can access it until 30 June 2026.
- From 1 July 2026, it will be closed permanently — all employers must use alternative super payment methods.
What should you do now?
Don’t wait until 1 July to check you are ready, we recommend:
- Reviewing whether your payroll software can calculate and pay super on each pay run
- Understanding what will be included in Qualifying Earnings for your workforce
- Checking cash flow impacts of more frequent super payments
- Confirming your super payment method will still be available beyond June 2026
- Allowing time to test new processes before the rules become mandatory
Speak with your Cassell & Co client manager to assess your readiness for Payday Super and plan a smooth transition well before 1 July 2026.