Key Changes under PayDay Super

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Key Changes under PayDay Super

From 1 July 2026, employers will need to make their superannuation contribution payments at the same time they pay their employees’ salaries and wages. This reform, referred to as PayDay Super, is a major change from the current quarterly payment system.

The move to more frequent superannuation payments will require both administrative and financial adjustments for many businesses.

Key changes under PayDay Super

From 1 July 2026, the following changes will apply:

1. Superannuation payments aligned with your pay cycle: Superannuation contributions will need to be paid each time your process your payroll. Whether you pay your wages weekly, fortnightly or monthly, superannuation will need to be paid at the same frequency.

2. Shorter payment timeframes: Contributions must be received by the employee’s super fund within 7 business days of payday, unless an extended timeframe applies (for example, for new employees).

3. New basis for calculating super – Qualifying Earnings: Qualifying Earnings (QE) will be the basis for calculating the Superannuation Guarantee. This expands on Ordinary Time Earnings and explicitly includes commissions, salary sacrifice amounts, and certain contractor payments.
 
This may increase super obligations for some employers.

4. Expanded reporting through Single Touch Payroll: The QE and super liabilities will both be reported through Single Touch Payroll (STP). As a result, the ATO will have greater visibility over late payments.

5. Changes to late payment penalties: Where superannuation contributions are not received by the employee’s super fund within 7 business days payday, the Superannuation Guarantee Charge (SGC) may apply. From 1 July 2026, the SGC:

• Is assessed by the ATO.
• Is calculated based on QE.
• Includes interest that compounds daily at the general interest charge rate.
• Includes an administrative uplift, which can vary based on an employer’s history of meeting superannuation guarantee obligations and may be reduced by a voluntary disclosure.
•  Is tax deductible.

6. Closure of the ATO Small Business Superannuation Clearing House: The ATO Small Business Superannuation Clearing House (SBSCH) will no longer be able to be used from 1 July 2026.

Before the changes take effect, we recommend reviewing:

•        Payroll systems
•        Internal controls and approval processes
•        Cash-flow management

If you would like assistance reviewing your processes or understanding how PayDay Super may affect your business, please contact a WDF team member – we are happy to help.

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