We are now less than six months away from the introduction of Payday Super. It is important that employers understand this change and take the necessary steps to ensure they are compliant no later than 1 July 2026. Early adoption is strongly encouraged.
What is Payday Super?
Payday Super is a new requirement introduced by the Australian Government. From 1 July 2026, employers must pay superannuation guarantee (SG) contributions at the same time they pay employees’ salary and wages, instead of quarterly.
Why Payday Super?
Payday Super is designed to strengthen Australia’s retirement system by:
- Ensuring employees receive their superannuation more regularly
- Reducing the risk of unpaid or underpaid super
- Making it easier for employees to track contributions in real time
- Supporting fairer and more consistent retirement outcomes.
Changes to superannuation calculations
Superannuation Guarantee will be calculated at 12 percent of an employee’s Qualified Earnings (QE).
Qualified Earnings includes:
- Ordinary Time Earnings (OTE)
- Commissions paid to employees
- Salary sacrifice amounts that would qualify as QE if they were not sacrificed
- Earnings paid to workers under an expanded definition of employee, including certain contractors paid mainly for their labour.
What this means for employers
Under the new rules, employers must:
- Pay superannuation on payday, and
- Ensure contributions reach employee funds within seven business days.
This represents a significant change to cash flow timing for many employers currently paying quarterly.
If super is not paid on time
Employers who fail to meet their obligations may face:
- Interest charges
- Penalties under updated Super Guarantee Charge (SGC) rules.
These rules ensure employees are placed in the same financial position as if superannuation had been paid on time.
Small Business Clearing House (SBCH) closure
The Australian Taxation Office Small Business Clearing House will close on 30 June 2026.
Employers currently using this service will need to transition to an alternative payroll or clearing house solution before that date.
What employers should do now
- Review your payroll software provider’s plan. Most major suppliers are preparing updates to support Payday Super. Engage early to ensure smooth implementation.
- Prepare for the closure of the SBCH. If you currently rely on it, begin assessing alternative software solutions.
- Seek advice if unsure. Contact your Holman Hodge advisor if you need guidance or assistance selecting compliant software.
Can we give you a hand?
If you would like any further detail on the above please contact your Holman Hodge advisor.