Payday Super Is Law: What Every Employer Needs to Do Before 1 July 2026

1. Super must be paid on payday

Employers must pay SG on the same day as salary and wages. The super fund must receive the contribution within 7 business days of payday. This is a strict deadline — missing it may trigger Superannuation Guarantee Charge (SGC) penalties. The old quarterly deadline (28 days after quarter end) is abolished. If you pay fortnightly, you now have a super obligation every fortnight.

2. New way to calculate super — Qualifying Earnings

The SG calculation base changes from Ordinary Time Earnings (OTE) to a broader concept called Qualifying Earnings (QE). QE captures more payment types than OTE — including commissions, some salary sacrifice arrangements, and other amounts currently included in an employee's salary or wages for SG purposes. If you haven't reviewed your payroll classifications recently, now is the time.

3. Tougher penalties for late super

The penalty regime has been completely overhauled. The Superannuation Guarantee Charge (SGC) is now ATO-assessed, not self-assessed. Late payments attract daily compounding interest at the General Interest Charge (GIC) rate, with a 200% maximum penalty cap(which the ATO can remit in appropriate cases). The old late payment offset rules are abolished.

On the positive side, SGC is now tax deductible — previously it was not.

Late super will become more visible, more expensive, and harder to fix.

4. Real-time ATO visibility through STP

Single Touch Payroll (STP) reporting must include Qualifying Earnings and the super liability amount from 1 July 2026. This gives the ATO real-time visibility of what you owe and when — which is how the new ATO-assessed SGC model will work in practice. Late or missing payments will be flagged immediately, not discovered months later.

5. Small Business Superannuation Clearing House closing

The Small Business Superannuation Clearing House (SBSCH) closed to new registrations on 1 October 2025. All existing users must transition to an alternative clearing house or direct payment method by 30 June 2026. If you currently use the SBSCH, you need a new solution in place before 1 July.

6. Fund allocation window reduced

Super funds currently have 20 business days to allocate a contribution to a member's account after receiving it. That window is being reduced to 3 business days. Employees will see their super hit their account much faster, and any errors in fund details or member information will surface immediately rather than weeks later.

1.   Review your payroll system.

Confirm your software can process SG payments each pay cycle (not quarterly) and report Qualifying Earnings through STP. Contact your payroll provider now — do not wait until June.

2.   Audit your earnings classifications.

Map your current OTE categories to the new Qualifying Earnings definition. Commissions, salary sacrifice, and allowances may need reclassifying. Get this right before 1 July, not after.

3.   Update your cash flow planning.

Although the total annual super cost doesn't change, businesses will lose the timing benefit of quarterly payments. Super becomes a per-pay-cycle outflow. Make sure your cash flow forecasts and working capital reflect this.

4.   Transition off the SBSCH.

If you use the Small Business Superannuation Clearing House, choose an alternative clearing house or set up direct fund payments before 30 June 2026.

5.   Verify employee fund details.

With the fund allocation window dropping from 20 to 3 business days, incorrect fund details will cause immediate problems. Clean up your employee super fund records now, including USIs, member numbers, and fund ABNs.

6.   Talk to your accountant.

These changes interact with your payroll processes, tax planning, and compliance obligations. A 30-minute conversation now is worth far more than an SGC assessment later.