Payday Super: Is Your Business Ready?

Payday Super starts on 1 July 2026, and from this date employers will need to pay superannuation contributions for eligible employees on each payday. Super Guarantee (SG) will be assessed based on whether contributions are received by the employee’s super fund within 7 business days of payday (also called Qualifying Earnings day), instead of quarterly. This has been introduced to increase transparency for the ATO and for employees, ensuring super contributions are received regularly and without delay.

Planning your transition

Make sure you talk to your tax professional if you’re unsure about the best timing for your business to transition, or how you’ll pay super going forward.

• Check that you have up-to-date super fund details for all eligible employees.
• Review and correct error messages you receive from super funds.
• Any payments you currently make that receive a warning or information message now could be rejected after 1 July 2026.

If you are still using the Small Business Superannuation Clearing House, it is time to transition as this service will no longer be provided by the ATO after 30 June 2026. The ATO has provided a checklist for moving away and there are many clearing house alternatives that are easy to use. There will be no late payment offset available for the June 2026 quarter. Thus, you are reminded to ensure payment reaches the employees superfund before the due date.

Payday Super Starts

When paying super, you must:

• Ensure all SG contributions are received by, and can be allocated by, your eligible employees’ super fund within 7 business days after payday (unless longer applies).
• Calculate super from qualifying earnings.
• Report qualifying earnings and super liability in your STP-enabled software.

Payday Super and Xpect

The CIBIS team have been upgrading Xpect in preparation for Payday Super so that when the time comes to start reporting, you will have a seamless transition from the old reporting method to the new one. Up to date qualifying earnings and super liability will be reported through STP on each pay day.

Does Payday Super apply to all employees?

Yes, full-time, part-time, and casual staff are all eligible employees for Payday Super.

What happens if I miss a Payday Super payment?

The ATO may impose penalties and interest charges. The ATO’s goal is for consistent compliance from employers.

Will I need to pay super on the exact paydays?

No to allow for processing time, you must ensure that contributions are received by the employee’s fund within 7 business days of each pay.

What happens if I miss the 7 business days deadline?

You will be liable for interest and administrative penalties as well as the unpaid super amounts. Any interest amounts charged are non-deductible.

Are there any exceptions to the 7 business days rule?

After hiring a new employee, you have up to 20 business days to make SG contributions. This is to allow for onboarding and fund setup.

Will this make payroll more complicated?

Initially yes, but over time businesses should be able to streamline the process of paying super and it will become part of the payday process.