PAY DAY SUPER
- 3 hours ago
- 2 min read
By Emma Rosenzweig of the ATO
Payday Super is about paying super on payday. It doesn't matter whether that's weekly, fortnightly or monthly, you will need to pay super at the same time as salary and wages.
From 1 July 2026 Super will need to be in your employees' accounts within 7 business days. However, if you're onboarding a new employee or paying to a new fund for the first time, you'll have a bit longer (20 business days) for the first payment to hit the account.
Super funds and payroll providers will also be making updates to their systems to support businesses to comply with Payday Super, including clearer error messages when a fund rejects a contribution. When and how will depend on each provider and fund.
With Payday Super, you'll see changes to how you calculate and report super.
Super will be calculated at 12% on qualifying earnings (QE). This is a new term that includes ordinary time earnings, salary sacrifice contributions, and other amounts paid to extended definition employees (e.g. contractors paid for their labour). For most employers, this won't change the amount of super you pay.
You'll report QE and super liability through Single Touch Payroll (STP).
Penalties will also be more expensive than before.
How should employers get ready?
There's plenty you can do now:
Start paying super payments more frequently. Instead of paying super quarterly, you can start making payments weekly, fortnightly or monthly.
Check your employees’ super fund details are up to date. Check for error messages about rejected contributions. Keeping accurate records now will save you time down the track.
Review your internal governance and assurance processes for super reporting.
Look for alternatives if you’re currently using the ATO’s Small Business Superannuation Clearing House. It will be closed from 1 July 2026.
Review your cash flow to understand how moving to paying super more frequently will affect your business.
If you use a tax professional, speak to them or your payroll provider to make sure you're ready for the changes.
Where can employers find out more?
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