From 1 July 2026, a new rule will take effect, reshaping how Australian employers manage superannuation. Under the Payday Super reform, you’ll need to pay your employees’ super contributions at the same time as their wages, not quarterly as before.
This shift might sound like just another compliance update, but it’s much more than that. Payday Super marks a move toward real-time super payments, stronger transparency, and better retirement outcomes for Australian workers. Here’s everything you need to know - and how to prepare your business before the change takes effect.
Recommended Reads
For years, employers have been allowed to pay super quarterly, up to 28 days after each quarter ends. While convenient, this often meant super contributions reached funds months late or, in some cases, not at all.
According to the Australian Taxation Office (ATO), more than $3.4 billion in super went unpaid in the 2019–20 financial year. That’s money employees missed out on for their future savings.
The government’s goal with Payday Super is to:
In short, Payday Super is about getting employees’ money where it belongs - sooner.
Super must be paid with wages
From July 2026, employers must pay superannuation guarantee (SG) contributions at the same time as wages or salaries.
The payments must usually arrive in each employee’s super fund within seven business days of payday. If your contribution doesn’t reach the fund in time, you’ll be liable for the Superannuation Guarantee Charge (SGC) - a penalty that includes unpaid amounts, interest, and administrative fees.
A new concept: Qualifying Earnings (QE)
The legislation also introduces the idea of Qualifying Earnings (QE) - a new term for the amounts for which super is calculated. This includes:
Simply put, you’ll pay super based on QE for every pay cycle, rather than waiting until the end of a quarter.
Extended timeframes in special cases
Most employers will need to meet the seven-day rule, but a few exceptions apply. You’ll have a little more time if, for example:
Updated SGC rules
If contributions are not paid on time, the SGC will still apply — but with updated components to match the new system:
The SGC will now be tax-deductible, which brings it in line with other business expenses.
New reporting requirements
To make the system more transparent, you’ll need to report both Qualifying Earnings and super liabilities for each employee through Single Touch Payroll (STP). This ensures the ATO can see contributions in real time and track compliance automatically.
Alongside the new timing rules, several system updates will make super payments faster and more reliable:
These improvements will help create a smoother, real-time payment experience for both employers and employees.
The ATO has announced that the Small Business Superannuation Clearing House (SBSCH) will be phased out by 1 July 2026 and closed to new users from October 2025.
This is because most modern payroll software already offers built-in clearing features that make super payments faster and more accurate. The ATO has said it will guide small businesses through the transition to commercial alternatives well before the change takes effect.
The ATO and Treasury have outlined a gradual rollout to give businesses time to adapt:
Some employers may underestimate the shift to real-time super. Key risks include:
Here’s a practical checklist to prepare your business before the 2026 deadline:
Understand how often you pay super now and whether your process can handle more frequent payments.
Use STP Phase 2-compliant payroll software that supports Payday Super automation. Platforms like RomeoHR already have built-in functionality to align payments and reporting.
Make sure your bookkeeper and payroll officers understand the new timing and reporting requirements.
Since super will be paid with each pay run, adjust your budgets accordingly. Work with your accountant to plan for regular, smaller super outflows.
Do a “trial run” before 2026 to confirm your clearing house or payroll software can process real-time payments smoothly.
Inform employees about the change — it shows transparency and helps them understand the benefits of receiving super more promptly.
Payday Super is one of the biggest changes to payroll in recent years. While it introduces new timing and reporting rules, it ultimately benefits both employers and employees.
For employers, it means fewer end-of-quarter admin headaches and stronger compliance. For employees, it ensures their super contributions are paid promptly, improving their long-term financial security.
By planning early, updating your payroll systems, and understanding your obligations, you can make this transition a smooth one — and step confidently into the new era of real-time payroll compliance.