Payday Super
Payday Super commences from 1 July 2026, introducing changes to how and when employers must pay superannuation contributions.
The Australian Taxation Office (ATO) has released guidance outlining updates to deadlines, calculation methods, payment processes and penalties. While full details are available at www.ato.gov.au, the summary below highlights the key changes employers should be aware of.
Deadlines for Making Payments
From 1 July 2026, superannuation contributions must be paid at the same time payroll is processed for each pay run.
Superannuation payments must generally be received by the employee’s superannuation fund within 7 calendar days of the payroll processing date. These shorter timeframes mean employers will need to ensure payroll processes are accurate and completed promptly.
Some exceptions may apply for new employees and certain circumstances. Employers should review ATO guidance to understand when alternative timeframes may apply.
Superannuation Guarantee (SG) Amounts
There is currently no legislated increase to the Superannuation Guarantee (SG) rate for the 2026–27 financial year. The minimum contribution rate will remain at 12%.
However, there are changes to how this percentage is calculated.
Currently, superannuation is based on an employee’s Ordinary Time Earnings. From 1 July 2026, superannuation will instead be calculated based on an employee’s Qualifying Earnings.
More details on what is considered ‘Qualifying Earnings’ can be found on the ATO website.
Making Superannuation Payments
From 1 July 2026, the ATO’s Small Business Superannuation Clearing House (SBSCH) will no longer be available to employers to process superannuation contributions.
Employers will need to ensure they are able to make contributions directly to each employee’s nominated, complying superannuation fund. Therefore, employers need to confirm that they hold the appropriate information for each employee, including:
superannuation fund name
superannuation fund ABN or USI
employee’s membership number
Some exemptions may apply for new employees and certain circumstances; ensure you’re aware of what these are before the due date.
Penalties
Previously, penalties of up to 200% of the unpaid superannuation amount could be applied, however these penalties were subject to partial or full remittance at the Commissioner’s discretion.
From 1 July 2026, penalties are expected to range between 25% and 50%, however these amounts will no longer be remittable.
This change reinforces the importance of meeting the new payment deadlines consistently. Employers who are unsure whether their payroll systems or processes are prepared for Payday Super may benefit from reviewing their current procedures in advance of the implementation date.
Support with payroll and superannuation processes can help ensure contributions are calculated correctly and paid on time under the new Payday Super requirements.