Quick answer: Payday Super started on 1 July 2026. You now pay each eligible employee’s super every payday instead of every quarter, and it must reach their super fund within 7 business days after paying your employee, unless a longer time applies. A new employee’s first payment, for example, has 20 business days.
If you employ staff, the way you pay their super changed on 1 July 2026. Under Payday Super, you pay each employee’s super guarantee every time you pay their wages, instead of once a quarter.
What has changed
- Quarterly due dates are gone. The last quarterly payment, for April to June 2026, was due by 28 July 2026. Each pay run since 1 July now has its own due date.
- Super must reach the fund quickly. The money must be received by your employee’s super fund, with enough details to match it to their account, within 7 business days after payday. Weekends don’t count, and neither does a public holiday for a whole state or territory, even one you aren’t in.
- New employees get longer. The first payment for a new employee, or to an employee’s new fund, has 20 business days.
- Super is worked out on “qualifying earnings”. This new term brings together ordinary time earnings and other payments such as commissions and salary sacrifice. The rate is still 12%.
- Single Touch Payroll reports more. Your STP reports now include qualifying earnings and super liability for each employee.
- The Small Business Superannuation Clearing House has closed. If you used it, you need another way to pay, such as a commercial clearing house or your payroll software.
Why paying on payday matters
The 7 business days are counted from payday, and they don’t stretch if a payment bounces. Super funds have up to 3 business days to allocate a payment or send it back, so one wrong member number can use up much of your window. That is why the ATO recommends paying super on payday itself.
If super arrives late, the super guarantee charge applies. Under the new rules the ATO assesses the charge itself, and it includes interest and an extra administrative amount.
The first year
The ATO says its focus in the first year (1 July 2026 to 30 June 2027) is on helping employers get it right. When something goes wrong, it will look at how you behave, asking: “Are you trying to pay each payday?” and “Are you fixing issues quickly?” Employers who try to pay on time and fix errors quickly are treated as low risk.
What to do now
- Pay super on the same day you run your pays.
- Check every employee’s super fund details, including member numbers and fund identifiers (USIs).
- Ask your payroll provider or clearing house how long payments take to reach funds, and where error messages appear.
- Make sure your payroll software reports qualifying earnings through STP. If it can’t yet, start as soon as you can: from 1 July 2027 the ATO will reject reports that leave them out.
- If a payment is missed or rejected, pay the fund as soon as possible and keep a record of what happened and how you fixed it.
- Plan your cash flow for super going out every pay cycle.
The ATO’s Payday Super for employers page has the full guidance, worked examples and a checklist to work through.
Common questions
Do weekends and public holidays count?
No. A business day is any day other than a Saturday, a Sunday or a public holiday for the whole of any Australian state or territory. A holiday for only part of a state, such as Royal Hobart Show Day, is still a business day.
Does Payday Super apply to contractors?
Yes, for independent contractors paid mainly for their labour. The same deadlines apply to them as to employees: 7 business days after payday, or longer in some situations.
What if I pay a bonus outside the normal pay run?
A bonus, commission, allowance or back payment made outside an employee’s regular pay schedule can be an “out-of-cycle payment”. Its super is due within 7 business days after the employee’s next regular payday. In the ATO’s example, a Christmas bonus paid on 7 December 2026, with the next weekly pay on 10 December, has its super due on 21 December.
What happens if super is late or rejected?
Fix it as soon as you can: pay the outstanding super to your employee’s fund, and keep a record of what happened and how you corrected it. Paying before the ATO issues an assessment reduces the super guarantee charge, though interest and the administrative amount may still apply. In the ATO’s first-year examples, an employer who pays on payday and fixes an error promptly is low risk, and the ATO will not focus compliance action on them.
Has the super rate changed?
No. It’s still 12%, now of qualifying earnings. Qualifying earnings include ordinary time earnings, all commissions, salary sacrifice contributions and other amounts previously included in salary or wages for super guarantee.
As a Registered BAS Agent, Julie can help you get your payroll and super ready for Payday Super. Get in touch to talk it through.
