Payday Super is one of the biggest changes to superannuation for Australian employers in decades and your business needs to prepare.

From 1 July 2026, employers won’t be able to pay super quarterly anymore – they’ll need to pay it on payday, at the same time as salary or wages.

What is Payday Super?

Under the new rules, the government is changing how the Superannuation Guarantee (SG) is calculated, reported and paid. Instead of paying super at least once every three months, employers must:

• Calculate super for every pay period (weekly, fortnightly, monthly etc.)
• Pay super to the employee’s fund at the same time wages are paid
• Ensure super contributions arrive within a set timeframe after payday, generally within 7 business days.

This is a major shift and one that affects payroll, cash flow and how employers manage their super processes.

When Does It Start?

1 July 2026 is the official start date. From that day, the Payday Super rules will apply to all employers who have Super Guarantee obligations.

Why Is This Happening?

The change is designed to:

• Reduce unpaid or late super contributions.
• Improve retirement outcomes by ensuring super is paid earlier (which helps compound growth over time).
• Give the ATO faster visibility of super payment compliance.

Employees will be able to see contributions arrive in their super fund quicker than under the current system, which can take up to three months from the pay period to arrive.

The Big Changes Explained

1. Pay Super on Payday

No more quarterly payments.
Super must be calculated each pay cycle and paid with wages so it arrives in the employee’s fund within 7 business days of payday (unless exceptions apply).

2. Qualifying Earnings (QE)

A new definition called Qualifying Earnings is introduced. This includes ordinary time earnings, salary sacrifice, and certain other payments. Employers will need to ensure payroll systems can calculate SG correctly using this new base.

3. Single Touch Payroll (STP) Reporting

Employers must report both Qualifying Earnings and Super Liability through STP — your payroll software will be updated to support this.

4. SuperStream Updates

SuperStream standards are being upgraded to enable faster online payments (via the New Payments Platform), better error messages and a new member verification request to check fund details before sending contributions.

5. Small Business Superannuation Clearing House (SBSCH) Closure

The SBSCH service will close on 30 June 2026, so small businesses using it should transition to alternative payment methods now.

What Employers Must Do Now

To be ready for Payday Super, employers should take these steps well before July 2026:

• Review payroll and reporting systems
• Confirm how often you currently pay super
• Confirm employee super fund details are accurate
• Check with your payroll or STP provider on system updates
• Plan your cash flow for more frequent super payments
• Transition away from the SBSCH (if you’re using it)

What Happens If You Don’t Comply?

If super isn’t received by the fund within the required timeframe, the employer may face a Super Guarantee Charge (SGC) which includes interest, administrative uplift and other penalties.

The ATO has indicated it will take a proportionate compliance approach in the first year, focusing on employers who don’t make a genuine effort to comply.

Why You Should Act Now

Whether you run a small business, manage payroll, or advise businesses, Payday Super will be one of the most important compliance changes in recent memory. Super will need to be paid more often, more quickly and more accurately than ever before.

Start planning now – speak to your CIB manager today and be ready by 1 July 2026.