Quick summary

Payday Super legislation has been formally passed and from 1 July 2026, employers must pay super contributions on the same day as salary/wage payments. Contributions must be received by the employee’s super fund within seven business days of their payday. 

This change ensures super is paid promptly with each pay cycle, rather than quarterly. The Payday Super initiative is designed to build trust and transparency, making it easier for employees to track their super and helping grow their retirement savings through more frequent contributions and compounding interest.

We’re are here to help you navigate the change confidently by supporting you with training, payroll guidance, and transition support.

Key changes for employers

1. Super Guarantee (SG) payments now due on payday

Employers must now pay SG contributions on the same day employees are paid. These contributions must reach the employee’s super fund within seven business days of their payday.

2. New ‘Qualifying Earnings’ (QE) concept introduced

A new earnings measure called Qualifying Earnings will be used to calculate SG contributions and the SG charge. Employers must report both QE and super liability through a single touch payroll.

3. Improved error messaging in SuperStream

Updates to SuperStream will make error messages clearer, helping employers understand why a super contribution was rejected and how to fix it.

4. Small Business Superannuation Clearing House (SBSCH) to close

The SBSCH will be discontinued from 1 July 2026.

5. Stricter penalties for late super payments

Changes to the SG charge mean employers will face tougher penalties for failing to pay super contributions on time.


There are two main changes to the final legislation versus the draft from early 2025:

  • The timeframe to receive payments from payday has changed from seven calendar days to seven business days.
  • Advertising rules for employee onboarding platforms were removed from the final legislation but may be considered separately by the government later.

 

ATO compliance approach

The ATO has issued draft guidance on how it will manage compliance during the first year of Payday Super (July 2026 – June 2027). It uses a three-tier risk system:

  • Low Risk: employers who quickly correct errors
  • Medium Risk: employers with a history of fixing missed payments within 28 days after the quarter 
  • High Risk: employers with unresolved SG shortfalls beyond 28 days  

 

Supporting information

Start planning for more frequent super payments ahead of the July 2026 deadline. 

Review your payroll processes and speak with your provider about system readiness. 

Review your super obligations by familiarising yourself with the new requirements and ensure all contributions are made on time

Look for any recurring errors and find ways to prevent them, so it’s easier to meet the new deadlines.

Engage with payroll providers and clearing houses to prepare for straight-through processing updates. 

Train payroll staff on new definitions and reporting requirements.

Assess cash-flow impacts of more frequent super payments. 

Consider early adoption before the mandatory start date.

Communicate with your employees about the upcoming changes and how they will be affected.

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Talk to your Catholic Super Relationship Manager. We can help you with any of the above points.

These steps will help to ensure a smooth transition to the new Payday Super system.

We understand this is a major operational shift for your business and Equip Super is committed to helping you prepare by providing: 

Training and support

We can offer training sessions for HR and payroll staff to ensure they’re well-versed in the new processes and requirements.

You can also access dedicated support through your Relationship Manager to assist with transition planning.

Payroll system integration

We can assist with guidance on updating and integrating payroll systems to ensure they can handle the more frequent super payments.

Clearing House solution

Our clearing house solution, OnlineQ, offers a new payment platform and real time payments using Osko. 

Employee communication

We can help you communicate with your employees about the upcoming changes, ensuring they understand how the new system changes will benefit them and what to expect.

This reform is designed to improve retirement outcomes for millions of Australians.

If you have any questions, please contact us or reach out to your Relationship Manager.

 

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Frequently asked questions

Payday Super is a Federal Government initiative requiring employers to pay their employees' superannuation contributions at the same time as their wages.

It aims to address unpaid and underpaid superannuation, which has cost millions of workers billions of dollars annually.

Payday Super starts on July 1, 2026.

Employers must transfer super contributions to employees' super funds within seven calendar days of payday.

Non-compliance will result in penalties, including the Super Guarantee Charge (SGC), daily interest, and administrative uplift charges.

Yes, exceptions include irregular payments and contributions for new hires, employers have until the end of the 21st calendar day after payday to allow additional onboarding time. Or other exceptional circumstances, like natural disasters.

Employers will need to align super contributions with payroll cycles, which may require updates to payroll software and processes.

It aligns payroll requirements, reduces the risk of missed deadlines, helps employees see that their employer is looking after them and making their required super contributions, and will help reinforce Employers of choice.

Yes, the ATO will offer legislative updates and guidance as the implementation date approaches.

Employers should review their payroll systems, reconcile data between super reports and payroll, and plan for cash flow adjustments.

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