Payday Super

What employers need to know 

From 1 July 2026, employers must pay super at the same time as salary and wages (not quarterly). Contributions must also reach your employee’s super fund within 7 business days after payday. The change aims to reduce late or unpaid super and improve outcomes for workers.  

Start preparing now to avoid last-minute changes to your payroll and processes. 

At a glance:

  • Start date: 1 July 2026
  • Pay super: Every payday
  • Deadline: Within 7 business days of payday
  • Reporting: Through Single Touch Payroll (STP)
  • Clearing house: SBSCH closes 1 July 2026

What this means for employers 

  • Pay super on payday: Aligns with each pay run (weekly, fortnightly, monthly).  

  • Meet the 7-day deadline: super funds must receive contributions within 7 business days after payday. First-time payments to a new employee/fund get 20 business days.  

  • Report more in STP: you’ll report Qualifying Earnings (QE) and super liability via STP.  

  • SBSCH is closing: Small Business Superannuation Clearing House closes on 1 July 2026; Employers who currently use SBSCH will need to move to an alternative super payment option, such as SuperStream‑enabled payroll software, a commercial clearing house, or another compliant payment method. ATO guidance: How to transition from SBSCH

  • Systems will change: Updates to SuperStream and payment systems will support payday super, including clearer error messages and a Member Verification Request (MVR) to confirm an employee’s super fund details before payments are made. For most employers, no additional action is required if payroll systems are up to date and SuperStream‑compliant. 

How you can prepare for Payday Super

Start planning now to ensure a smooth transition to Payday Super. Here’s how employers can get ready:

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    Check employee details Review and update employee information in your payroll system — including full name, TFN and chosen super fund — to prevent delays or rejected contributions.

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    Move to more frequent payments Start paying super weekly, fortnightly or monthly instead of quarterly. If your bookkeeper or tax agent manages payroll, align with them now.

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    Update your onboarding process Collect Choice of Fund details as early as possible for new starters to avoid missed or returned payments.

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    Review your payroll system Confirm your software supports more frequent super payments and is SuperStream and STP compliant. Your provider will advise when updates are available.

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    Align ABN and reporting details Ensure your ABN matches across SuperStream and STP to avoid processing errors.

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    Plan for cash flow changes Model the impact of more frequent super payments on payroll cycles, budgeting and cash flow.

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    Train your team Make sure payroll, HR and finance teams understand the new requirements, timelines and reporting obligations.

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    Transition from SBSCH (if applicable) If you use the Small Business Superannuation Clearing House, begin transitioning and download contribution history before 30 June 2026.

If you already pay super on payday, you’re ahead — from 1 July 2026, contributions will simply be allocated faster.

For more information: ATO checklist for employers

How super will be calculated? 

  • Super is calculated as 12% of Qualifying Earnings (QE). 

  • QE includes ordinary time earnings, salary sacrifice contributions and other amounts paid to extended definition employees (for example, contractors paid for their labour). 

  • For most employers, moving to QE won’t change the total super you pay.  

Which workers or employees does Payday Super apply to? 

Payday Super applies to most employees, including those under the extended definition of ‘employee’ — such as independent contractors paid principally for their labour, sportspeople and performers.  

Payroll frequency 

Most awards or agreements set out when employees must be paid. For guidance on changing pay frequency, visit fairwork.gov.au and search “frequency of pay”. 

Reporting requirements (STP) 

You’ll continue reporting through Single Touch Payroll (STP). Under Payday Super you will report: 
  • your employees’ QE 
  • the super liability amounts associated with those earnings. 

Late payments & the Super Guarantee Charge (SGC) 

If a fund doesn’t receive the contribution within the timeframe (unless an extension applies for first payments), you must pay the SGC, which: 

  • is assessed by the ATO 

  • is calculated on QE 

  • includes daily compounding interest at the general interest charge rate 

  • includes an administrative uplift (may be reduced with voluntary disclosure) 

  • is tax-deductible; penalties for not paying SGC are not deductible.  

Need help? 

We’re here to support you. 

 

Use the REI Super Employer Portal

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FAQs

Payday Super begins on 1 July 2026. 
Most employees, including those under the extended definition of ‘employee’ (e.g., independent contractors paid principally for their labour, sportspeople and performers). 
QE includes ordinary time earnings, salary sacrifice contributions and other amounts for extended definition employees. For most employers, moving to QE won’t change the super amount; it changes how you report. 
You must pay the SGC, which includes interest and an administrative uplift; penalties may apply for not paying SGC. 
No. The ATO’s Small Business Superannuation Clearing House (SBSCH) will close permanently on 1 July 2026 and can no longer be used to make super contributions after that date.
If you currently use the SBSCH, you’ll need to transition to an alternative super payment option before it closes. This may include:

  • SuperStream‑enabled payroll software
  • A commercial superannuation clearing house
  • Another SuperStream‑compliant payment method
To avoid disruption, the ATO recommends transitioning early and downloading your SBSCH payment and employee records before 30 June 2026, as you won’t be able to access them once the service closes.

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