From 1 July 2026, Australia’s superannuation system is changing. If you employ staff, this update requires your attention.
The good news? The transition is simple and smooth – and there are genuine benefits for both your employees and your cash flow.
What Is Payday Super?
Instead of paying super contributions quarterly, you’ll pay them on payday – the same day as your standard pay runs.
The Key Changes
Super guarantee calculation: Calculated as 12% of qualifying earnings (QE) – which includes ordinary time earnings plus commissions and bonuses – rather than ordinary time earnings (OTE) alone.
Payment timing: Contributions must be paid on payday to allow payments to be processed and received by the super fund within 7 business days (instead of within 28 days of quarter-end).
Super guarantee charge (SGC): Now assessed by the ATO and tax deductible (previously self-assessed and non-deductible).
Single Touch Payroll (STP): Report both QE and super liability with each pay run.
SBSCH closure: Transition to an alternative payment method by 30 June 2026. We recommend Xero if you do not currently have a payroll platform that handles payday super.
Why the Changes?
For Employees
- ✅ Faster access to super and compound growth
- ✅ Greater certainty on payment timing
- ✅ More accurate retirement planning with full earnings captured
For Your Business
- ✅ Predictable cash flow – smaller regular payments instead of larger quarterly amounts
- ✅ Reduced compliance risk – automatic payments integrated into payroll
- ✅ Super guarantee charges are now tax deductible
What You Need to Do Now
Don’t wait until July 2026. We recommend starting now. Here’s why:
- System readiness: Confirm your payroll software (Xero and others) can calculate QE correctly
- Process testing: Identify and fix issues with employee super fund details before the deadline
- Data validation: Verify all employee super details are accurate and current
Action Checklist
- ✓ Review your payroll system
- ✓ Review and update your employee super fund details
- ✓ Plan your super payment method
- ✓ Test your processes
- ✓ Contact us for guidance
Quick FAQs
Can I start early? Yes – and we recommend you do.
What if I miss the 7-day deadline? Super guarantee charges (SGC) apply, but they are now tax deductible and ATO-assessed. However, any interest or penalties are not tax deductible.
Will my super costs increase? No. The rate stays at 12% – only timing and calculation basis change.
Do I need new payroll software? Most modern systems (including Xero) already support the changes. Check with your provider or call us.
What if an employee won’t provide super details? Request stapled super fund details from the ATO.
Need Assistance – Contact Us
These changes are designed to streamline the super system.
If you have questions about how Payday Super affects your business, or need help preparing your payroll systems, get in touch now. We’re here to guide you through the changes and ensure you’re ready well before 1 July 2026.
Don’t leave this to the last minute. Contact us today.
See ATO website for further details.