Payday Super: What employers need to know
Payday Super starts 1 July 2026, introducing major changes to how employers manage and pay superannuation.
From this date, employers must pay super at the same time as wages – whether weekly, fortnightly, or monthly. This replaces the currently quarterly payment system.
Super contributions must reach employees’ funds within 7 business days of payday. For new employees, the first payment must be made within 20 business days.
What is Payday Super?
Payday Super aims to:
- Improve employee super balances
- Increase transparency
- Reduce unpaid super liabilities
Key Changes from 1 July 2026
- Super paid every cycle. You must pay super each time you run payroll – no more quarterly deadlines.
- 7-day payment window. Contributions must be received by the super fund within 7 business days.
- New calculation method: Qualifying Earnings (QE). Super will now be calculated on qualifying earnings (QE) instead of ordinary time earnings (OTE). QE includes OTE plus additional payment types, meaning employers may need to adjust their payroll calculations.
How to Prepare for Payday Super
To stay compliant, start preparing now.
- Review what’s included in qualifying earnings (QE)
- Confirm your payroll software supports Payday Super
- If you are currently using the ATO Small Business Super Clearing House, ensure you have transitioned away from this platform before it ceases on 30 June 2026.
- Ensure your system can:
- Pay super on payday
- Report through STP at the same time
- Calculate super correctly under QE rules
- Update your cashflow planning for more frequent payments
- Seek our professional advice if required
Penalties for Non-Compliance
Missing the 7-day deadline can result in the Superannuation Guarantee Charge (SGC). The SGC:
- Applies daily compounding interest
- Includes an administrative uplift based on compliance history and may be reduced by voluntary disclosure
- Is assessed by the ATO
- Is tax deductible
Additional penalties of 25% to 50% of unpaid SGC may apply.
What’s Included in Qualifying Earnings (QE)?
Qualifying earnings expand the base used to calculate super.
Included payments:
- Ordinary hours of work
- Casual loadings
- Annual leave and paid leave
- Commission (including some outside ordinary hours)
Excluded payments:
- Overtime
- Certain shift penalties
- Some salary sacrifice amounts
See the full table below for a breakdown
ATO table of what is included in the new QE (Qualifying Earnings) amount
| Payment | Salary & Wages | OTE | QE from 1 July 2026 |
| Hours & Loading | |||
| Ordinary Hours of Work | Yes | Yes | Yes |
| Casual loading | Yes | Yes | Yes |
| Shift Penalties | Yes | No | No |
| Overtime payments | Yes | No | No |
| Leave Types | |||
| Annual leave | Yes | Yes | Yes |
| Rostered days off – time taken and paid at ordinary rates | Yes | Yes | Yes |
| Sick, personal & carers Leave | Yes | Yes | Yes |
| Salary Sacrifice | |||
| Salary sacrificed to superannuation – amount that would otherwise be OTE if paid to the employee | Yes | Yes | Yes |
| Salary sacrificed to superannuation – amount that would not otherwise be OTE if paid to the employee (such as paid parental leave or overtime) | Yes | No | No |
| Commission | |||
| Commission Payments | Yes | Yes | Yes |
| Commission solely for work performed entirely outside ordinary hours | Yes | No | Yes |
Get Ready for Payday Super
Payday Super will impact your payroll processes, reporting, and cashflow. Preparing early will help you avoid penalties and ensure a smooth transition.
Need help getting ready?
Contact us today – Our team can guide you through the changes and make sure your business is fully compliant before 1 July 2026.
ATO Resources
🔗Payday Super | 🔗Payday Super checklist for employers | 🔗Payday Super Resources