The questions and answers employers need to know about ‘Payday Super’ which starts from 1 July 2026
The Australian Treasury has released details of the Government’s ‘payday super’ measure, which is expected to take effect on 1 July 2026. This new policy will require employers to make superannuation guarantee (SG) contributions on the same day they pay employees’ wages.
Key Changes Under Payday Super
1. Super Contributions Due Within Seven Days
Employers will need to ensure SG contributions are deposited into their employees’ super funds within seven calendar days of payday. Failure to do so could result in the SG charge being applied.
2. Simplified Late Contribution Process
Late contributions will automatically be applied to the earliest unpaid period, reducing the administrative burden on employers.
Supporting Changes
Faster Fund Allocation: Super funds will have 3 business days (down from 20) to allocate or return contributions.
Retirement of ATO Small Business Superannuation Clearing House (SBSCH): This service will be discontinued on 1 July 2026, by the ATO, so small businesses will need alternative options.
New Reporting and Penalties
Employers must report ordinary times earnings (OTE) and total super liability through Single Touch Payroll (STP). Failure to pay or report on time will expose employers to increased penalties, especially for repeated offenses.
Impact on Employees
Employees will benefit from real-time monitoring of super payments, ensuring their employers meet obligations promptly.
Preparing for Payday Super
Employers should start preparing now by:
- Updating payroll systems.
- Ensuring compliance with the seven-day window.
- Adapting to new STP reporting requirements.
With payday super, compliance becomes more streamlined, and employees gain transparency over their super contributions.
Please note that Payday Super is not yet law.
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