Payday Super is a change to how you calculate and when you pay your employees' super guarantee. At the moment, Super Guarantee (SG) contributions are required to be paid quarterly into your employees’ super accounts.

From 1 July 2026 employers will need to pay employees their super guarantee on payday, at the same time as their salary and wages. The employer must pay the employees’ super on payday – whether it’s weekly, fortnightly or monthly. If your business already pays super with salary and wages, you might not need to make any changes.

Super guarantee is:

• calculated as 12% of qualifying earnings (QE), which is a new term that brings together ordinary time

earnings (OTE) and other payments

• paid to an employee's super fund on payday and received by the super fund within 7 business days

(unless an extended timeframe applies, such as for new employees).

Payday Super may make super obligations easier for some businesses by reducing missed payments and avoiding SGC penalties. However, many employers may need to upgrade payroll systems, adjust their payment processes, and plan for tighter cash flow to handle more frequent payments and real-time ATO reporting.

Here are key areas to understand about Payday Super:

A) When to pay super: From 1 July 2026, you must pay super at the same time as wages. Contributions need to reach the employee’s fund within seven business days of payday.

B) Qualifying earnings: Payday Super introduces Qualifying Earnings (QE): the amount payable to an employee on their regular pay cycle. QE determines how much super you owe each time you run payroll, now called QE day.

C) Super guarantee charge (SGC) changes: The penalty for late or missing super will align with the new payment frequency. Employers who don’t pay within the required timeframe may face additional charges and compliance action.

There are a few exceptions to the seven-day rule, such as: first-time super payments for a new employee and payments made outside the usual pay cycle.  

How you can prepare for Payday Super?

Start planning now to make the Payday Super transition smoother:

1. Check employee data: Make sure all details (name, TFN, super fund info) are correct in your payroll software to avoid delays.
2. Update onboarding: Capture choice of fund early for new hires to prevent bounce backs.
3. Plan for cash flow: More frequent payments may mean adjusting budgets and forecasts.
4. Train your team: Ensure payroll and finance staff understand the new rules and timelines.
5. Review payroll systems: Confirm your software can handle more frequent super payments.
6. Stay informed: Keep up to date with ATO guidance and legislative updates.