Payday Super: what employers need to know

You can continue using the ATO Small Business Superannuation Clearing House right up until 30 June 2026.

From 22 June 2026, Essential Super for business will be available to CommBank business customers to help meet their super obligations with confidence. This includes fee free access to the Essential Super for business Clearing House, giving you a simple way to stay on top of Payday Super changes.

Find out how Essential Super for business can support your business.

Under Payday Super rules you’ll need to pay superannuation guarantee (SG) to your employees’ super funds every time you pay their wages – whether that’s weekly, fortnightly, or monthly.

SG must reach your employees’ super funds within seven business days of each payday (down from the current 28 days after the end of each quarter). 

From 1 July 2026 SG will be calculated on ‘qualifying earnings’ which include: 

• ordinary time earnings (including regular salary pay, commissions, shift loadings)
• salary sacrifice super contributions
• other amounts currently counted for SG (such as directors' fees, payments to contractors that are wholly or principally for the person’s labour, and certain payments made to artists, musicians and sportspersons). 

Note: Overtime, lump sum payments of termination of employment and reimbursements are excluded from qualifying earnings. 

• For new employees: Contributions must be received by the employee’s chosen super fund within 20 business days after their first payday. This timeframe allows for onboarding and collecting fund details.
• For existing employees who switch to a new super fund: SG must be received by the new super fund within 20 business days after the employee’s next payday, allowing you time to set up the new fund details on your records. 
• For payments outside the normal pay cycle (like bonuses or commissions) SG can be paid by the next regular payday. 
• In rare cases (e.g. natural disasters), you may have up to 20 business days to make SG. 

If a super fund rejects a contribution, they’ll need to return contributions within 3 business days (down from 20 business days). If contributions are returned you will need to fix the underlying problem and re-submit them within the original seven-day window to avoid any penalties. 

From 1 July 2026, you will need to report both your employees’ qualifying earnings and SG contributions to the ATO through Single Touch Payroll (STP) with every pay cycle.

If you don’t make a SG payment in time, you may be liable for the superannuation guarantee charge (SGC), which starts accruing after the seven-day turnaround period finished (unless a relevant exception applies).

• SGC under Payday Super will include the shortfall amount, notional earnings, and an administration fee.
• Additional SGC applies if you fail to comply with an employee’s choice of fund rules.
• You will need to lodge an SGC statement and pay the charge to the ATO.
• Further penalties may apply if SGC is not paid promptly.

The ATO has issued additional information to help employers transition from the SBSCH before 1 July.​

However, you can continue using the ATO SBSCH right up until 30 June 2026.

With Payday Super the maximum super contribution base - the earnings cap for super contributions - will now be calculated over the whole year instead of each quarter. So, you’ll only check total yearly earnings before applying the cap.

With Payday Super the turnaround times will be much tighter. You may want to ensure you are prepared for the Payday Super changes by updating your systems and processes. 

You don't have to wait until 1 July 2026 to start paying your employees' super more frequently. Starting earlier can help you identify and remove any roadblocks.

• Review your cash flow and payroll systems. Are you set up to handle more frequent SG payments to your employees from 1 July 2026? The ATO has published a Cash Flow Kit to help businesses manage their cash flow. 
• Reporting via Single Touch Payroll (STP) Ensure your payroll system is updated to capture and report qualifying earnings and SG liabilities via STP. Be aware that additional or updated STP fields may become mandatory, and penalties may apply for incorrect or late reporting.
• Is all employee information up to date and complete? Try and fix any missing or incorrect data to avoid payment delays. 
• Understand qualifying earnings. Make sure your SG calculations are based on the new rules.
• Review the process to handle rejected contributions. If a contribution gets rejected by the super fund and returned you need to fix the underlying issue and re-submit the contribution within the original seven-day turnaround period, to avoid any SGC. Also note there are exceptions to this seven-day period, as mentioned above. 

The introduction of Payday Super could mean a lot of change, but it will offer several benefits for employers:

• Improved compliance: Employers will have a clear and consistent timeline for superannuation contributions, which can reduce the risk of non-compliance and penalties.
• Enhanced employee trust: Regular superannuation payments build trust with employees, as they know their contributions are being made on time.
• Reduced payroll liabilities: More frequent superannuation payments lower the risk of accumulating large quarterly payments, helping to streamline cash flow management.
• Increased efficiency: Integrating super payments with payroll can create a more efficient and automated system, saving time and resources.

By embracing Payday Super, you’ll be directly supporting your employees’ financial wellbeing and helping them build a more secure future. 

• More regular super contributions: Super is paid more often, which can help your employees’ balances grow faster through the power of compounding.
• Peace of mind: Employees can feel confident knowing their super is paid on time.
• Greater transparency: Employees can easily track their super contributions and retirement savings.