What you need to know about Payday Super
From 1 July 2026
Super must be paid at the same time as salary and wages.
New payment deadlines
Super funds must receive both contribution data and payment within 7 business days of payday, or within 20 business days for new employees or employees who have recommenced employment or changed super funds.
Updated penalties and charges
Employers who miss, underpay or make late super contributions after 1 July 2026 will face new penalties and charges (including the Super Guarantee Charge).
Small Business Superannuation Clearing House closure
The Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Now is a great time to join CBUS as a participating employer and benefit from our free clearing house service.
Payday Super is good for you and your employees
Streamlined payroll processes by aligning super payments with regular payroll cycles.
Keep track of super payments more easily, reducing the risk of penalties.
Better visibility of super and retirement savings.
Super is invested sooner and may grow faster.
More frequent Super Guarantee payments
Super Guarantee (SG) payments will be aligned to pay cycles, instead of monthly or quarterly payments. Payday Super will override any timing provisions in EBAs that allow quarterly or delayed super payments.
Qualifying Earnings (QE) will be the new amount used to work out SG
Qualifying Earnings (QE) will be the new amount used to work out SG. It includes Ordinary Time Earnings (OTE), salary sacrifice and other amounts that qualify as wages/salary. For most employers, QE won’t change the amount of SG you currently pay.
New payment deadlines and faster exception handling
New payment deadlines – within 7 business days for ongoing employees, or 20 business days when onboarding new employees or employees who have recommenced employment or changed their super fund.
Faster exception handling – if contributions are rejected, you’ll need to resolve issues quickly, ensuring the contribution is received by the fund within the same 7 business day window to avoid penalty.
Payday Super will change your payroll process
| Now | From 1 July 2026 |
|---|---|
| 1. Run payroll and finalise wages. | 1. Run payroll and finalise wages – no change here. |
| 2. Calculate SG using ‘Ordinary Time Earnings’. Accrue for monthly or quarterly payment, subject to the maximum super contributions base. | 2. Calculate SG using ‘Qualifiying Earnings’. Pay SG each payday until maximum super contributions base is reached, after which SG is no longer payable for the financial year. |
| 3. Create SuperStream batch file for upload. | 3. Submit SuperStream payment + data via clearing house/fund immediately – super fund must receive SG payments (and be able to allocate the payment to a member) within 7 business days. |
| 4. Pay via clearing house/fund. | |
| 5. Reconcile receipts and fix rejects. | 4. Resolve errors fast. Super funds must return any contributions which are unable to be allocated within 3 business days. The new Superannuation Guarantee Charge applies to employers who do not make on-time and in-full super contributions. |
What happens if you miss, underpay or make late payments?
Updated penalties and charges (including the Superannuation Guarantee Charge) will apply from 1 July 2026 for missed, late or underpaid super contributions.These include late payment penalties, interest on shortfalls and additional penalties for repeat offenders.
The ATO has published guidance on its proposed approach to enforcement for the 12-month period following 1 July. Visit the ATO and search for Practical Compliance Guideline 2026/1.
Importantly, the ATO does not have discretion about when the Payday reforms apply to employers. If the ATO receives definitive information that an employer has an SG shortfall, the ATO is required to apply the law to the employer.
Learn more about ATO penalties.
| Individual SG shortfall | Notional earnings | Administrative uplift | General interest charge | SG charge late payment penalty |
|---|---|---|---|---|
| Remaining SG after accounting for late contributions (calculations based on QE). | Daily compounding interest from day after due date. | Additional charge of up to 60% of the shortfall. | Daily compounding interest after assessment until payment. | 25%-50% penalty if assessed SG charge is not paid off within 28 days. |
| Plan | Prepare | Implement |
|---|---|---|
| Map pay cycles and super payment processes. Align payments with QE definitions. | Pilot payday-aligned payments. | Train teams + backups. |
| If using Single Touch Payroll (STP), confirm digital service providers are prepared for upgrades to the SuperStream standard. | Review rejections and error messages and fix root causes. | Run parallel test payday payrolls alongside ‘messy’ runs (e.g. bonus payments). |
| Nominate process owners, delegations and escalation points. | Update and embed payroll and super payment policies (calendar of cut-off dates, delegations and error resolution and escalation points). | Document final process approval, records and reporting. |
We're with you
We’re your partner in super and can help you be Payday Super ready. Check out our Payday Super tools and resources below.
Use our Payday Super checklist
Our Payday Super how to guide and checklist tells you all you need to know to be Payday Super ready.
Join a Payday Super webinar
Learn more about Payday Super (and ask questions) in one of our employer webinars.
When does Payday Super start and what’s changing?
From 1 July 2026, super is required to be paid each payday (rather than at least quarterly).
Does super have to be paid the same day as wages?
Contributions must be received by your employees’ nominated super fund within 7 business days of payday (with limited exceptions). In practice, many employers will aim to pay on/near payday to allow for fund processing time and for any errors to be resolved.
What are Qualifying Earnings (QE)?
Ordinary Time Earnings (OTE) are what employers generally use to calculate Superannuation Guarantee (SG) contributions. Qualifying Earnings (QE) includes Ordinary Time Earnings (OTE) and other amounts that are currently treated as wages/salary for SG (including salary sacrifice amounts).
Learn more from the ATO about Qualifying Earnings.
Payments included in Ordinary Time Earnings/Qualifying Earnings
| Payment type | Ordinary Time Earnings (OTE) | Qualifying Earnings (QE) |
|---|---|---|
| Ordinary salary or wages | ✔ | ✔ |
| Base pay (hourly, weekly, annual) | ✔ | ✔ |
| Commissions | ✔ | ✔ |
| Bonuses (performance, retention, incentive – if not solely overtime-related) | ✔ | ✔ |
| Allowances, including: shift, site, skill or qualification, industry, leading hand | ✔ | ✔ |
| Paid leave taken at ordinary rates: annual, personal/carer’s and paid family and domestic violence leave | ✔ | ✔ |
| Paid public holidays, rest breaks, piece-rate and back pay (relating to ordinary hours) | ✔ | ✔ |
Payments excluded from Ordinary Time Earnings/Qualifying Earnings
| Payment type | Ordinary Time Earnings (OTE) | Qualifying Earnings (QE) |
|---|---|---|
| Overtime/Time off in lieu (if ordinary hours of work are identified in awards or agreements) | X | X |
| Expense reimbursements | X | X |
| Allowances that are purely expense-related: travel, meal and tool reimbursements | X | X |
| Redundancy payments | X | X |
| Payments in lieu of notice | X | X |
| Unused leave paid on termination | X | X |
| Workers’ compensation (for lost earnings) | X | X |
| Genuine one-off ex gratia payments unrelated to work performed | X | X |
| Paid parental/personal/carer’s leave | X | X |
What about current quarterly due dates prior to 1 July 2026?
Currently, SG is due 28 days after each quarter ends (28 Oct, 28 Jan, 28 Apr and 28 Jul). Under the Payday Super reforms, super is only considered to be paid once it is received by the relevant super fund and able to be allocated to the relevant employee's account. For example, if a contribution is rejected by the fund because the TFN provided is incorrect, the contribution is not 'able to be allocated' and is therefore not considered to have been paid.
What’s the exception for new employees and employees switching super funds?
The first contribution for these employees will need to be made within 20 business days of paying their first salary/wage, then within 7 business days for ongoing wage/salary payments.
We run weekly/fortnightly/monthly payrolls. Do we pay super every time?
Yes, your super payment cycle must mirror your payroll cycle (weekly/fortnightly/monthly). You’ll need processes that can reliably get contributions to funds within the required window after each payday.
Should we still use a clearing house? What about the SBSCH?
You can use clearing houses, but you’ll need to ensure they can meet the tighter timeframes. The ATO Small Business Superannuation Clearing House is set to close from 1 July 2026 and closed to new users on 1 October 2025. CBUS’ Clearing House QuickSuper and SuperChoice for former EISS members will both be Payday Super ready to receive and process SG payments quickly.
How do bonuses, commissions, backpay and out-of-cycle payments work?
Out-of-cycle qualifying earnings, which may include commissions, bonuses, payments in advance and back payments, will be payable on the next payday, therefore avoiding the need for an out-of-cycle super contribution. However, if there are no further paydays for the relevant employee (for example, if the employee has ceased employment) then the extension does not apply.
What happens if we miss a payment or underpay SG contributions?
If contributions don’t arrive on time/in full, employers will be assessed for SG charge/shortfalls, with stronger penalties applying (including higher penalty ranges in some circumstances). Learn more about missed or late Payday Super payments from the ATO.
What should we do now to get ready?
A practical readiness checklist includes:
- Confirm your payroll system supports Payday Super timing and any new reporting fields/processes.
- Map ‘non-standard’ pays (bonuses, backpay, commissions) and plan to pay super contributions on the next payday.
- Validate employee fund details early (to reduce rejections and rework).
- Review cashflow impacts of moving from ‘quarterly lump sum’ to ‘every pay run’.
- Decide your payment pathway post-SBSCH (bank/direct to funds vs commercial clearing house).
See our Get ready for Payday Super how to guide and checklist (PDF) for the steps you need to take before 1 July 2026.
Does the maximum super contribution base calculation change?
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. Pay SG each payday until the maximum super contributions base is reached, after which SG is no longer payable for the relevant employee for the rest of the financial year.
Learn more about what payments are qualifying earnings for the purposes of the maximum super contribution base from the ATO.
What should I do if a super payment is rejected by a fund?
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 resubmit them within the original 7 business day window to avoid penalties. This change helps ensure employees’ super contributions are processed properly and transparently. Exceptions to the 7-business day turnaround are:
- 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.
- 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.
- Employees who have recommenced employment.
- Payments outside the normal pay cycle (like bonuses or commissions), where SG can be paid with the next regular payday run.
Will offering choice of fund be affected by Payday Super?
Subject to legislation being passed, employers can request a new employee's stapled fund details during onboarding, allowing them to show the employee their stapled fund before offering other fund options. Learn more from the ATO.
This information is of a general nature only. It does not account for your specific needs or personal circumstances. The information is current as at the date of publication and is based on our understanding of the laws at February 2026.