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What Australian employers need to know about Payday Super.

Written by ,
 19 March 2026.

Australia’s superannuation system is gearing up for one of its biggest updates in recent years. From 1 July 2026, employers will need to pay superannuation at the same time as wages under the new Payday Super legislation. This marks the end of the quarterly payment cycle and introduces a more transparent, timely and accountable approach to super contributions.

What is it now?

Right now, employers can pay Superannuation Guarantee (SG) contributions at least quarterly, with payments due 28 days after the end of each quarter. This can also be paid more frequently, e.g., monthly.

What is going to change from 1 July 2026?

TopicNowChanges from 1 July 2026
Super guarantee paymentsMust be received by a super fund within 28 days of the end of the quarter, but can be paid quarterly or more frequently e.g. monthly.Paid to an employee’s super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days.
Super guarantee contributions due date
  • 28 October
  • 28 January
  • 28 April
  • 28 July
Due within 7 business days of payday. Some exceptions may apply (including for new employees).
Basis for super guarantee calculationSuper is calculated as 12% of ordinary time earnings (OTE).Super guarantee is calculated as 12% of QE, which includes OTE and other payments.
Super guarantee charge (SGC)
  • Applies when amounts aren’t received by a super fund within 28 days of the end of a quarter.
  • Is calculated based on salary and wages.
  • Includes interest at 10% per annum.
  • Includes a flat administration fee.
  • Is self-assessed and requires the lodgment of an SGC statement.
  • A tax deduction can’t be claimed for the payment of SGC.
  • Applies when amounts are not received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees).
  • Is calculated based on QE.
  • Includes interest that compounds daily at the general interest charge rate.
  • Includes an administrative uplift which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure.
  • Is assessed by the ATO.
  • SGC is tax deductible.
PenaltiesMaximum of 200% of the SGC, which can be remitted in part or in full.25% or 50% of the unpaid SGC depending on any prior penalties.
Single Touch Payroll (STP)Report either OTE or super liability.Report both QE and super liability.
Small Business Superannuation Clearing House (SBSCH)
  • Closed to new users on 1 October 2025.
  • Existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super. Visit the ATO website.
SBSCH is no longer available.
Employee data and payment processing
  • Super payments may take a number of days to be received by a super fund.
  • Employers receive incomplete or inaccurate data from their employees, which causes errors when they try to contribute to a super fund and delayed payments.
  • Employers are unaware of key changes to large super fund’s details.
  • The SuperStream data and payment standards will be revised to allow payments made via the New Payments Platform and provide better error messaging to help employers address errors faster.
  • A new member verification request will enable employers to confirm that a super fund can match their employee contribution to the super fund for the first time and will accept a contribution for them.
  • Improvements to the Fund Validation Service will give employers early notice of key changes to large super fund’s details, such as fund mergers, that could affect their ability to make contributions to super funds.

1. Deadline for super payment

Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.

2. Calculating super guarantee amounts

The super guaranteed amount is calculated as 12% of qualifying earnings (QE). QE includes:

  • Ordinary Time Earnings
  • All commissions paid to employees
  • Salary sacrifices amounts that would qualify as qualifying earnings had they not been sacrificed to superannuation
  • Earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour

3. Small Business Superannuation Clearing House (SBSCH)

SBSCH is no longer available for new entrants and will not process any payments beyond 30 June 2026.

4. Maximum contribution base changed from quarterly cap to annual cap with PayDay Super

The maximum contributions base (MCB) is the upper limit of your employee’s earnings for each financial year for which you need to pay super guarantee (SG). If your payments of qualifying earnings to your employee reaches the MCB, you can stop paying the minimum SG contributions for the employee for that year.

Under the current superannuation guarantee (SG) system, there is a quarterly Maximum Contribution Base (MCB) of AU $62,500 that effectively caps the amount of earnings on which SG is payable each quarter. Current superannuation cap is AU $62,500 x 12% = AU $7,500.

From 1 July 2026, when Payday Super reforms commence, the MCB will no longer operate on a quarterly basis. Instead, it will apply on an annual basis for the full financial year.

5. Calculating the MCB

The MCB for a financial year is calculated using the following formula (rounded down to the nearest 10 dollar multiple): Concessional contributions cap × charge percentage ÷ 100.

Using the current MCB amount (AU $250,000), this is calculated as follows: AU $250,000 x 12 ÷ 100 = AU $30,000.

The new annual MCB for FY2026-2027 will be released close to the end of this financial year.

What this means for employers

Moving from quarterly payments to paying super every pay cycle means far more frequent outflows (potentially up to 52 times instead of 4 times a year). This will be especially noticeable for small businesses with weekly or fortnightly pay cycles. With faster turnaround times, any incorrect details or processing errors will surface immediately. This increases the need for robust internal controls and accurate data management.

What should employers do?

1. For all clients

Plan ahead. You do not need to wait until 1 July 2026 to start paying super at the same time as you pay salary and wages. You can start now.

We also highly recommend reviewing cash flow projections to account for more frequent super payments.

2. For clients currently using SBSCH

Existing users of the ATO SBSCH are encouraged to take steps now to transition to alternative options offered by super funds, commercial clearing houses or payroll software providers. The choice of a particular default super fund or commercial clearing house is ultimately at the employer’s discretion.

Our dedicated payroll officer will be in contact with you to discuss possible options for the set-up of a default Super Fund, commercial clearing house for your company. If there is any particular super fund of your preference, please let us know and we will assist you throughout the transition process.

To allow our payroll team sufficient time to support the transition, monitor and conduct testing to ensure super payments remain compliant with ATO requirements, we would appreciate your confirmation of company default super fund set up and the clearing house replacement by no later than 10 April 2026.

3. Provide employee superannuation details in full and on time

We highly recommend that complete and accurate superannuation details are collected and maintained for all employees at on-boarding/employment contract sign-off stage. This includes:

  • Employee’s chosen super fund name
  • ABN
  • USI
  • Membership number
  • Confirmation of fund compliance where required
  • For employees with Self-Managed Super Fund (SMSF), additional information will be required

Timely and accurate provision of super details supports compliance with Superannuation Guarantee obligations and helps avoid unnecessary interest, administrative costs and penalties under new SGC rule.

4. Educate employees

Remind employees to keep their super fund details up to date and keep HR & payroll team updated and prepare them for more frequent contributions moving forward

Final thoughts

Payday Super Reform represents a major change, but with early planning in place, employers can manage the transition smoothly. The sooner businesses begin adjusting, the easier it will be to meet the new requirements without unnecessary stress.

The ATO link with more information can be found here. Please contact your dedicated payroll officer if you have any questions.

What Australian employers need to know about Payday Super

About Acclime.

Acclime helps businesses, from funded startups to multinational corporations, start and operate in Australia and beyond, navigating local regulatory complexities to maximise opportunities while ensuring compliance. As a trusted partner, we provide premier advisory and corporate services across Australia and the Asia-Pacific region.

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