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Payday Super Effective 1 July

Retire couple laughing

Payday Super reforms are now helping deliver fairer retirement outcomes 

From 1 July 2026, employers are required to pay 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 have 20 business days from payday for the initial contribution. 

This reform strengthens the retirement income of millions of Australian workers. The superannuation system infrastructure was improved to enable faster processing and quicker payments. 

This reform replaced the previous quarterly payment model and was designed to: 

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

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

Generally, super must be received by the employee’s fund within seven business days of payday. 

  • Minimise any potential timing issues by paying super on each payday. Don’t leave it to the last day of the seven business days after payday to make your super payment. 

First contribution for a new employee or super fund

The payment deadline is extended for the first eligible SG contribution you are making:

  • for a new employee, or
  • to a new complying super fund for an existing employee after you have stopped making contributions to another super fund.

In these situations, the contribution must be received by the super fund within 20 business days after the relevant Qualifying Earnings (QE) day.

A QE day is the day you pay your employees (payday). 

  • 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

Superannuation funds, digital service providers and the ATO are working together to help employers be compliant now that Payday Super is here. We have super helpful tools to support you. 

Employer Payday Super 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)? The SBSCH closed effective 30 June 2026. 

If you were using the SBSCH, choose a new service provider.

  • Check your existing payroll software – they may have super functions. 
  • Check other payroll software or providers. See the SuperStream Product Register. 

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, where 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