This is the final preparation phase before Payday Super becomes mandatory on 1 July 2026. It’s a good time to check in on your systems, tidy up processes and make sure everything is tracking smoothly. If you need support along the way, we’re here to help.
Confirm when your software will be ready. Contact your digital service or payroll provider to find out.
- If you use a clearing house or super fund portal, check if they are ready and if you need to make any updates.
If you're still using the Small Business Superannuation Clearing House (SBSCH), transition now to an alternative provider such as SuperStream enabled payroll software, a commercial clearing house, or another compliant payment method. See the SBSCH checklist.
Review your payroll governance processes now to help avoid issues later. This includes checking and cleaning employee data such as super fund details, USIs, member numbers and TFNs (where provided), and resolving any existing super warnings or errors — as issues that surface today could result in rejected contributions after 1 July. Put a clear process in place to quickly identify, correct and resend any failed contributions, and make sure super payments are received by employees’ funds within 7 business days after payday.
Understand and apply ‘qualifying earnings’ (QE)
From 1 July 2026, super must be calculated on qualifying earnings (QE) instead of ordinary time earnings (OTE). Qualifying earnings generally include ordinary hours of work, certain types of paid leave, allowances, commissions and bonuses, salary sacrificed amounts that would otherwise attract super, and payments to some contractors paid mainly for their labour.
To prepare, employers should check that payroll settings:
- Calculate super guarantee (SG) using QE
- Correctly exclude non QE items such as reimbursements and most overtime
- Align with employment contracts and awards
More information is available at
ato.gov.au/QE and in the ATO’s Qualifying Earnings factsheet.
Review cash flow and payment timing
Because super will now be paid with each pay run, it’s important to understand how this change may affect cash flow — particularly for businesses that pay staff weekly or fortnightly.
Consider:
- Updating cash flow forecasts and budgeting
- Paying super on payday itself (best practice) to allow for processing time
- Testing payment timing ahead of July to identify and fix any bottlenecks early
Before the new system begins, make sure you meet your final quarterly super obligation by paying super for the January to March 2026 quarter by 28 April 2026. This payment closes out your quarterly responsibilities and helps ensure a clean transition to Payday Super from 1 July 2026.
You must switch to Payday Super from 1 July.
Download ourchecklist PDFto help you track your progress and prepare for Payday Super.
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Content in this article is provided by the Australian Taxation Office (ATO). REI Super is not the author of this content and is sharing this material for general information only. Please visit ato.gov.au for more guidance.The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129