Payday super is coming – what employers need to know

Payday Super is now law, and it will change the way employers pay superannuation from 1 July 2026.

Instead of paying super quarterly, you’ll need to pay it at the same time you pay your employees’ wages. The Australian Taxation Office (ATO) is encouraging businesses to start preparing early so the transition is smooth.

Here are the key changes:

• Super gets paid with wages – From 1 July 2026, super must be paid on payday – no more quarterly cycles.

• Faster payments – Super must reach your employees’ funds within 7 business days of payday. For new employees, you’ll have 20 business days to make their first payment.

• Qualifying earnings – Super will be calculated on qualifying earnings. For many businesses, this won’t change how you currently work things out.

• Reporting updates – You’ll report qualifying earnings and total super liability through Single Touch Payroll (STP). Your payroll software provider will share updates.

• Quicker error reports – If there’s a problem with a contribution, you’ll find out sooner. Funds now have 3 business days to allocate or return payments.

• Super Guarantee Charge (SGC) – Late or incorrect super will trigger the SGC, calculated on qualifying earnings along with new penalties.

What to do now

Review your payroll process, speak with your payroll provider, and start planning to align super payments with your pay cycle. Acting early means less stress and a smoother transition.