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Quick summary

Payday Super legislation has been formally passed and from 1 July 2026, employers must pay super contributions on the same day as salary/wage payments. Contributions must be received by the employee’s super fund within seven business days of their payday. 

This change ensures super is paid promptly with each pay cycle, rather than quarterly. The Payday Super initiative is designed to build trust and transparency, making it easier for employees to track their super and helping grow their retirement savings through more frequent contributions and compounding interest.

We’re here to help you navigate the change confidently by supporting you with training, payroll guidance, and transition support.

Payday Super webinar

On 9 December 2025, our team unpacked everything you need to know about the upcoming Payday Super changes and shared how we’ll support you every step of the way. Catch up now and get ready for the transition.

Key changes for employers

1. Super Guarantee (SG) payments now due on payday

Employers must now pay SG contributions on the same day employees are paid. These contributions must reach the employee’s super fund within seven business days of their payday.

2. New ‘Qualifying Earnings’ (QE) concept introduced

A new earnings measure called Qualifying Earnings will be used to calculate SG contributions and the SG charge. Employers must report both QE and super liability through a single touch payroll.

3. Improved error messaging in SuperStream

Updates to SuperStream will make error messages clearer, helping employers understand why a super contribution was rejected and how to fix it.

4. Small Business Superannuation Clearing House (SBSCH) to close

The SBSCH will be discontinued from 1 July 2026.

5. Stricter penalties for late super payments

Changes to the SG charge mean employers will face tougher penalties for failing to pay super contributions on time.


There are two main changes to the final legislation versus the draft from early 2025:

  • The timeframe to receive payments from payday has changed from seven calendar days to seven business days.
  • Advertising rules for employee onboarding platforms were removed from the final legislation but may be considered separately by the government later.

 

Your employer checklist

Get yourself ready for Payday Super changes. Download our employer checklist.

Download

ATO compliance approach

The ATO has issued draft guidance on how it will manage compliance during the first year of Payday Super (July 2026 – June 2027). It uses a three-tier risk system:

  • Low Risk: employers who quickly correct errors
  • Medium Risk: employers with a history of fixing missed payments within 28 days after the quarter 
  • High Risk: employers with unresolved SG shortfalls beyond 28 days  

 

Supporting information

Start planning for more frequent super payments ahead of the July 2026 deadline. 

Review your payroll processes and speak with your provider about system readiness. 

Review your super obligations by familiarising yourself with the new requirements and ensure all contributions are made on time

Look for any recurring errors and find ways to prevent them, so it’s easier to meet the new deadlines.

Engage with payroll providers and clearing houses to prepare for single-touch payroll updates. 

Train payroll staff on new definitions and reporting requirements.

Assess cash-flow impacts of more frequent super payments. 

Consider early adoption before the mandatory start date.

Communicate with your employees about the upcoming changes and how they will be affected.

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Talk to your Equip Super Relationship Manager. We can help you with any of the above points.

These steps will help to ensure a smooth transition to the new Payday Super system.

We understand this is a major operational shift for your business and Equip Super is committed to helping you prepare by providing: 

Training and support

We can offer training sessions for HR and payroll staff to ensure they’re well-versed in the new processes and requirements.

You can also access dedicated support through your Relationship Manager to assist with transition planning.

Payroll system integration

We can assist with guidance on updating and integrating payroll systems to ensure they can handle the more frequent super payments.

Employer portal support

You can access our Employer Portal experts from our administration team.

Employee communication

We can help you communicate with your employees about the upcoming changes, ensuring they understand how the new system changes will benefit them and what to expect.

This reform is designed to improve retirement outcomes for millions of Australians.

If you have any questions, please contact us or reach out to your Relationship Manager.

 

Below are some of the common acronyms you’ll come across with the Payday Super updates.

 

SG — Superannuation Guarantee

The mandatory minimum superannuation contribution employers must pay for eligible employees. Under Payday Super, SG must be paid on payday rather than quarterly.

OTE — Ordinary Time Earnings

Employee earnings used to calculate SG contributions. OTE will now be incorporated into a broader category called Qualifying Earnings (QE) which will act as the basis for super calculations under Payday Super.

QE — Qualifying Earnings

A new concept introduced by the ATO for Payday Super, used to support correct SG calculation and reporting.

SGC — Superannuation Guarantee Charge

A penalty that may be applied if SG contributions are not received by the super fund within seven business days of payday under Payday Super.

STP — Single Touch Payroll

The mandatory reporting system through which employers must report Qualifying Earnings and super liabilities each pay cycle under Payday Super.

SBSCH — Small Business Superannuation Clearing House

An ATO‑operated clearing house that closed to new members in 2025 and will be fully closed to operations from 1 July 2026. Employers, if using this method, are advised to transition away from the SBSCH ahead of Payday Super commencement.

MCB — Maximum Contribution Base

The earnings cap above which employers do not need to pay SG to their employees.

ATO — Australian Taxation Office

The regulator responsible for enforcing Payday Super, monitoring SG payments, and issuing penalties.

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Frequently asked questions

Payday Super is a Federal Government initiative requiring employers to pay their employees' superannuation contributions at the same time as their wages.

It aims to address unpaid and underpaid superannuation, which has cost millions of workers billions of dollars annually.

Payday Super helps employees by sending super contributions to their fund at the same time as their wages, giving faster visibility of payments, reducing missed or late contributions, and helping boost long‑term retirement savings.

Payday Super starts on 1 July 2026.

Employers should review their payroll systems, reconcile data between super reports and payroll, and plan for cash flow adjustments.

See our employer checklist for actions you can take now to get ready.

Employers must transfer super contributions to employees’ super accounts within seven business days of payday. 

Non-compliance will result in penalties, including the Super Guarantee Charge (SGC), daily interest, and administrative uplift charges.

Yes, exceptions include irregular payments and contributions for new hires, employers have until the end of the 21st calendar day after payday to allow additional onboarding time. Or other exceptional circumstances, like natural disasters.

Employers will need to align super contributions with payroll cycles, which may require updates to payroll software and processes.

It aligns payroll requirements, reduces the risk of missed deadlines, helps employees see that their employer is looking after them and making their required super contributions, and will help reinforce Employers of choice.

Yes, the ATO will offer legislative updates and guidance as the implementation date approaches.

Super is tied to the date Qualifying Earnings (QE) are paid – not when wages are ‘due’ or when funds appear in an employee’s bank account. Therefore, super contributions must be received by the employee’s super fund within seven business days of the QE payment.

If a contribution is returned to you (e.g. due to incorrect account details), you must correct the error and re-submit the payment within the original seven day window to avoid penalty. 

Yes. Employers have an extended window of up to 20 business days for the first payment for a new employee, or when an employee has changed their super fund.

Super funds are required to return contributions that can't be accepted within three business days. This is reduced from the current 20 business day window.

The ATO won't formally assign each employer a public risk rating, but will use risk categories internally to prioritise compliance activity in the first year.

Employers who attempt to comply and resolve issues promptly are generally considered lower risk.

Yes. Employers will continue to use SuperStream-compliant clearing houses. From 1 July 2026, SuperStream providers will upgrade to SuperStream version 3.0.

SuperStream 3.0 introduces faster payment options, improved error messaging, and a Member Verifcation Request service that allows employers to check member details with super funds before making contributions.

Yes. The ATO Small Business Superannuation Clearing House is closed to new users and will permanently close on 1 July 2026. Businesses using this service must transition to an alternative SuperStream-compliant solution before that date.

Yes. From 1 July 2026, quarterly super deadlines no longer apply. Super must instead be paid in connection with each payday, and contributions must be received by super funds within the required timeframe.

Stapling rules will still apply with Payday Super, and from 1 July 2026 you'll be able to request stapled fund details and offer this at the same time you provide a new employee with their super choice form.

You must still provide your employees with a choice of super fund, and you must request stapled super fund details from the ATO if you don't receive a choice form from your employee.

Where a contractor is treated as an employee for superannuation guarantee purposes, Payday Super timing requirements also apply to those payments.

Yes. Employers will be required to report QE and super liabilities through STP to support increased visibility of super payments.

If you pay more contributions than you need to for a QE day, the excess is carried forward to the next QE day (up to 12 months). Contributions, including any excess, are applied in the order they're received by the super fund. Alternatively, you can request a refund from us by following our refund request process.

If paying by direct debit, it may take up to five business days for payment to reach the super fund.

If paying by direct credit (EFT) it may take up to two business days for payment to reach the super fund.

Treasury have advised that technical amendments will be made to ensure people don’t unintentionally exceed their concessional contributions cap in the 2026–27 FY when SG payments move from quarterly contributions to the new Payday Super system. As yet there is no mention about the 2025-26 FY. We’ll provide details as they're released. 

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