Payday Super is coming! As one of the most significant changes to Australia’s superannuation system in decades, please take a few minutes to find out what you need to know to get ready.
Put simply: Payday Super is about paying super each payday.
Right now, if you’re an employer, you must pay super into your employees’ fund at least once every three months. But, from 1 July 2026, employers will need to make a super contribution for eligible employees each payday.
This change will help ensure super is paid in full, on time, and to the correct fund sooner – seeing many workers better off at retirement.
With the countdown on to the start of Payday Super, here’s what you can do now for a smooth transition.
Take action now
Many employers already pay super more frequently than the quarterly requirement. If that’s you, you’re ahead of the game!
If you still pay your super obligations quarterly, start planning to pay your super each payday from 1 July. By planning and testing your payroll process now before 1 July you will give yourself time to manage your business processes and cashflow to find a system that works best for you.
Also, do a governance stocktake. Are your employees’ super fund details up to date? This includes their member account numbers and unique super identifiers. An easy way to tell if you need to make updates is if you’re receiving error messages about rejected contributions. Any payments you currently make that receive a warning or information message now, could be rejected after 1 July and cause you to have a late payment. So, it’s best to fix the errors you can now.
Keeping accurate records now will save time down the track.
Prepare for the closure of the Small Business Super Clearing House
As a small business, you may be using the ATO’s Small Business Super Clearing House (SBSCH) to process your super payments. The SBSCH will be closing permanently on 1 July 2026. This is because the system infrastructure is designed for quarterly payments, not the more frequent super payments that will start under Payday Super.
Choose an alternative provider now and switch over after you’ve paid super for the January to March quarter (due 28 April). Give yourself time to transition before the SBSCH closes.
Check with your current payroll provider to see if they offer super payment functionality as part of your subscription package.
Remember to download all the information you need from the SBSCH before 30 June. There will be no access to historical records after 1 July. You can find information on how to do this at ato.gov.au/SBSCH.
Understand the Payday Super changes
Beyond paying super each payday, what else is changing under this reform?
Firstly, when it comes to calculating super, there’s a new term you need to know – qualifying earnings, or QE. It includes ordinary time earnings, salary sacrifice contributions, and other amounts paid to extended definition employees (e.g. contractors paid for their labour). QE is the new base for calculating super contributions, replacing ordinary times earnings. For many employers, this won’t change how much super they currently pay to their employees. You will, however, need to report QE and super liability amounts through Single Touch Payroll.
Additionally, for the contributions to be paid on time, super funds will need to receive super contributions within 7 business days after payday. Your deadline is a bit longer for new employees or first-time payments to a fund, in those cases you’ll have 20 days to pay.
The super guarantee charge (SGC) has been updated, including penalties and interest, for employers who don’t pay on time. SGC will now also be calculated based on QE amounts and be tax deductible.
In terms of systems, to give users a better experience, SuperStream is being updated to:- support the speed and volume of transactions.
- reduce likelihood of rejected employee contributions
- improve error messaging for when payments don’t go through.
Confirm your software is ready
Single Touch Payroll (STP) products will be updated to give you the ability to report QE and super liability. Since there are plenty of different providers, the change to these systems won’t happen at exactly the same time or in the same way. However, digital service providers should let you know when they have updated their products to enable reporting QE and when they meet updated SuperStream requirements. Otherwise, you can call them or your payroll provider to check if your software is ready, and if not, when will it be.
Understand the ATO’s compliance approach for the first year
We’ve released guidance to let you know the factors we’ll consider when deciding how to apply our compliance resources to investigate employers in relation to the first year of Payday Super. You can read our approach at ato.gov.au/PDScompliance.
What’s important is that we’ll recognise employers who try to do the right thing between 1 July 2026 to 30 June 2027 and who resolve any issues quickly. Employers who do this shouldn’t be the focus of our compliance action.
Help and support
Visit our website at ato.gov.au/paydaysuper . As we get closer to the start date and beyond, more information will be published. Make sure to check out ato.gov.au/paydayresources for videos, factsheets and checklists to help you transition smoothly.
Talk to your registered tax professional
If you have questions about Payday Super, we encourage you to reach out to your tax professional for help. You may want to ask them about:- how you’ll pay super going forward
- what business processes you will need to change
- the best timing for your business to transition and start paying super each payday
- alternative providers for paying super, if you need to leave the Small Business Super Clearing House
- other ways they can support you.
Stay informed
Want to stay up to date? We’ve got a couple ways to help you do that.
Firstly, if you take a few minutes now to subscribe to the ATO’s Small Business newsroom at ato.gov.au/sbnews, you’ll be sent regular updates on Payday super.
If you’re on LinkedIn, you can also follow me for more information, as I’ll be sharing updates each month as we approach the 1 July 2026 start date.
Don’t wait until the last minute
Above all, the best thing you can do to prepare for Payday Super is to get ready now. We all know how quickly time can pass, so take action now so you’re ready for the 1 July changes.
Emma Rosenzweig, Deputy Commissioner, Payday Super Program, Australian Taxation Office
Emma Rosenzweig is the Deputy Commissioner and Senior Accountable Officer for the Payday Super Program, within the Australian Taxation Office.
Emma is responsible for delivering this transformational program, which will result in greater certainty that the superannuation entitlements of millions of people are paid correctly and on time. She is passionate about ensuring there is a healthy super system for future generations.
