Skip to main content

We use cookies to better deliver personalised content. Read about how it works.

Search aware.com.au

Suggestions

 Payday Super: Act Now 1 July 2026 

Retire couple laughing

Payday Super reforms are designed to support fairer retirement outcomes

From 1 July 2026, employers will be required to deposit their employees’ SG into their Super Fund accounts within seven business days of payday.

For new employees or payments to a super fund for the first time, employers will have twenty business days from payday for the initial contribution.

This reform will strengthen the retirement income of millions of Australian workers. The superannuation system infrastructure will be improved to allow faster processing and quicker payments.

This reform replaces the current quarterly payment model and is designed to:

  1. Help boost retirement savings through more frequent contributions and compound interest.
  2. Reduce superannuation underpayments, which currently affect millions of workers.
  3. Improve transparency and compliance across the employment landscape.

Take action now before Payday Super starts 1 July 2026.

Why it matters 

Each year, over $5 billion in superannuation goes unpaid, disproportionately affecting young workers, women, migrants, and those in casual or insecure employment. By aligning super payments with payday, the legislation ensures workers receive their entitlements sooner and more reliably.

For example*:

  • A 25-year-old worker could see an extra $6,000 in retirement savings.
  • Recovering unpaid super for a 35-year-old could improve their retirement balance by over $30,000
Payday Super Two Sams

What employers need to know

  • Start Date: 1 July 2026
  • Timeframes: 
    • Generally, super must be received by the employee’s fund within seven business days of payday. 
    • For new employees or payments to a super fund for the first time, you will have 20 business days for the initial contribution. 
    • Minimise any potential timing issues by paying super on each payday. Don’t leave it to the last day of the 7 business days after payday to make your super payment. 
  • Penalties: Employers who don’t pay the right amount, on time, or to the correct fund, may need to pay the super guarantee charge (SGC). There may also be general interest and penalties for not paying SGC. 
  • ATO Compliance Approach: The ATO will adopt a risk-based compliance model, focusing on supporting employers who act in good faith during the transition.

Support for Transition

Industry bodies, payroll providers, and the ATO are working together to ensure a smooth transition. Employers are encouraged to begin preparing now by reviewing payroll systems and engaging with their superannuation clearing services.

Get Payday Super Ready with our Employer Checklist and our super helpful Payday Super employer FAQs.

Qualifying earnings: what’s changing and what it means for you 

From 1 July 2026, the way employers calculate super is changing as part of Payday Super. 

Instead of using ordinary time earnings (OTE), you’ll calculate super as 12% of qualifying earnings (QE). This is a new term that includes ordinary time earnings, all commissions, salary sacrifice contributions, and other amounts paid to extended definition employees (e.g. contractors paid for their labour). 

For most employers, this won’t change how much super you pay. But it does mean you may need to check your payroll setup and reporting so everything runs smoothly. Employers must report both QE and super liability amounts through Single Touch Payroll. 

SBSCH closure information for employers

Using the ATO’s Small Business Super Clearing House (SBSCH)? It closes on 1 July 2026. You don’t need to wait until 1 July — switching earlier gives you time to test your new setup and reduces the risk of late payments during the transition. 

If using the SBSCH, employers need to: 

  • Choose a new service provider.
  • Download transaction history.
  • If using this service, employers won’t be able to use the SBSCH to make this payment after 30 June 2026. 

Refer to the ATO SBSCH checklist for more information.

When Employers need to pay super – Payday Super changeover 

From 1 July 2026, super moves from quarterly payments to each payday. These dates show how the ATO applies your contribution during the changeover.

 

Period SG Payment due date
1 April – 30 June 2026 (final quarterly Super Guarantee period) Super must be received by the employee’s fund by 28 July 2026 (final quarterly due date).  
Super paid on or before 28 July 2026  Counts toward the June 2026 quarter obligation, super is owed for that quarter.  
Super paid on or after 29 July 2026 

Treated under Payday Super rules, even if it relates to earlier work. 

If you miss the 28 July due date and owe super for the June quarter, you will need to lodge a super guarantee charge (SGC) statement with the ATO.  


Super is on time if received by the super fund (with all the information needed to allocate the super to the employee's member account) within 7 business days after paying your employee. 

ATO Payday Super resources

Legislative resources

General information only: This is general information and doesn’t take account of your business circumstances. It isn’t legal or tax advice. You should consider the ATO guidance and your own professional advice. The ATO is the primary source of Payday Super requirements. ato.gov.au | ato.gov.au

*This example is for illustrative purposes only. It relies on various assumptions. If actual circumstances differ from these assumptions, actual results will be different. Introducing payday super | Treasury Ministers