If you employ anyone in Australia, one of the biggest payroll changes in decades is coming on 1 July 2026. It's called Payday Super — and it fundamentally changes when and how you pay your employees' superannuation guarantee.
Here's everything you need to know, and what you should be doing right now to prepare.
What is Payday Super?
Currently, employers are required to pay the superannuation guarantee (SG) at least once per quarter — with contributions due 28 days after the end of each quarter. From 1 July 2026, that changes entirely.
Under the new rules, you must pay super on the same day you pay your employees' wages. The contribution must then be received by the employee's super fund within 7 business days of payday.
The reform is legislated to take effect from 1 July 2026, and the ATO has confirmed the start date.
What counts as Qualifying Earnings?
Payday Super introduces a new concept: Qualifying Earnings (QE). This replaces the existing ordinary time earnings (OTE) calculation. Qualifying Earnings include ordinary time earnings, salary sacrifice super contributions, and other payments currently included in an employee's salary or wages for super purposes. Super is calculated at 12% of Qualifying Earnings — the rate itself hasn't changed.
What happens if you're late?
If contributions don't reach the employee's fund within 7 business days of payday, the Super Guarantee Charge (SGC) applies. The new SGC includes the unpaid super amount, interest, an administrative uplift, and penalties of up to 200% of the SGC for serious cases. The SGC amount is tax deductible — but penalties on top of it are not.
The Small Business Clearing House is closing
If you use the ATO's Small Business Superannuation Clearing House (SBSCH) to pay super, you need to act now. The SBSCH closed to new users in October 2025 and will close entirely on 1 July 2026. You'll need to switch to a SuperStream-compliant alternative — most payroll software providers (Xero, MYOB) already have this built in.
STP reporting changes
Single Touch Payroll will be updated to include a new code for Qualifying Earnings from 1 July 2026. Your payroll software will need to support QE reporting — check with your provider that this update is coming.
The ATO's first-year compliance approach
The ATO has indicated a risk-based approach for the first year. Low-risk employers who attempt to pay on time and correct errors promptly will face minimal compliance pressure. Medium-risk employers who clear all shortfalls within 28 days of quarter end are next, and high-risk employers with outstanding shortfalls after that will face the full force of the SGC. The first-year approach is education-focused — but it won't apply from 1 July 2027.
Practical checklist — what to do before 1 July 2026
1. Review your payroll software — check whether your platform is Payday Super ready and what updates are required.
2. Transition off the SBSCH — move to a SuperStream-compliant clearing house before 30 June 2026.
3. Map your payment windows — understand what your 7-business-day window looks like under your current pay cycle.
4. Plan your cashflow — instead of reserving super quarterly, you'll need cash on every payday. Start building this habit now.
5. Confirm the latest super settings — the maximum contribution base and related thresholds are being updated for Payday Super, so check the current figures with your adviser or the ATO to calculate SG correctly.
Need help?
Payday Super will affect every employer in Australia. If you're unsure how the changes affect your setup, or want help reviewing your payroll systems before July, book a free 30-minute consultation at nebulaaccounting.au.
This article is general information only and does not take account of your personal circumstances — it is not personal tax, financial or legal advice. Tax laws change and apply differently to different people. Nebula Accounting Pty Ltd is a registered tax agent (No. 26259377); please speak with us or check with the ATO before acting.