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Payday super: Changes for employers from 2026

Australia’s superannuation system has undergone a shift, with new Payday Super rules taking effect from 1 July 2026.

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The reform requires employers to pay super guarantee (SG) contributions at the same time as wages, replacing the quarterly payment cycle.

Super to be paid on payday

From July, super must be paid on each payday. Employers can no longer wait until the end of a quarter.

Instead, SG contributions must be paid to employees’ super funds at the same time as salary and wages, and received by the fund within seven business days. Limited exceptions apply in cases such as new employees who haven’t yet supplied fund details.

New definition for calculating super

The way super is calculated has shifted. Previously based on ordinary time earnings (OTE), the SG is instead calculated on qualifying earnings (QE) – a broader definition that includes OTE, salary sacrifice amounts and other eligible payments that count as salary or wages for SG purposes.

The SG rate remains at 12 per cent, but the wider definition of QE is expected to change the way some employers calculate contributions.

Updated reporting requirements

Reporting through Single Touch Payroll (STP) has also changed. From July 2026, employers must report QE and superannuation liability, giving the ATO clearer visibility of super obligations in real time.

Changes to the super guarantee charge

The rules for late payments have been modernised. The super guarantee charge (SGC), which applies when contributions aren’t received on time, will be:

  • Assessed by the ATO, rather than self‑assessed
  • Calculated on QE
  • Charged interest that compounds daily
  • Tax‑deductible, unlike the current SGC.

Penalties move to a simpler 25 per cent or 50 per cent structure, depending on an employer’s compliance history.

Importantly, the ATO says employers who genuinely attempt to comply between 1 July 2026 and 30 June 2027, and fix mistakes quickly, won’t be the focus of compliance action. The intent is to give businesses time to adapt.

How the Victorian Chamber can help

Download the Victorian Chamber's Payday Super - Employer Guide 2026. This guide explains the numerous practical and operational implications employers need to manage.

It covers:

  • who counts as an employee for SG purposes
  • what counts as qualifying earnings (QE) and how SG is calculated
  • the new seven business‑day on‑time payment requirement and allowable longer periods
  • the revamped penalty and compliance framework (including notional earnings, administrative uplift 
    and choice loading)
  • transitional rules and key dates, and
  • practical steps — systems, onboarding, payroll, reconciliation and supplier checks.

Access the guide

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