Payday Super: What Employers Need to Do Before 1 July 2026
The Federal Government has introduced major reforms to the way employers must pay Superannuation Guarantee (SG). Known as Payday Super, the changes move Australia away from quarterly payments and towards a payroll-driven model where super is paid within seven business days of each payday.
These reforms are progressing through Parliament and are expected to pass, with strong bipartisan and Treasury support. Once implemented from 1 July 2026, every employer in Australia will be required to align their super payments with payroll. In practice:
If you pay wages weekly, super must also be paid weekly.
Why the change?
Payday Super has two core objectives:
to reduce unpaid and late super,
and to increase employees’ retirement balances.
The scale of the problem is large. According to the ATO’s 2024 Annual Report, more than 89,000 employers were carrying unpaid SG debts of over $2.2 billion. By moving super to payday, the Government wants to prevent these shortfalls before they occur.
It also reflects the reality of today’s payroll environment. With contemporary software, super can be calculated, paid and tracked almost instantly. Employees will see contributions sooner, and it becomes easier for the ATO to detect missed or delayed payments
Where does the legislation stand?
On 9 October 2025, two key Bills were introduced:
Treasury Laws Amendment (Payday Superannuation) Bill 2025, and
Superannuation Guarantee Charge Amendment Bill 2025.
Together, these Bills set out the framework for how and when superannuation must be paid, reported and enforced. Once passed, the new requirements will apply to all employers in Australia.
While the legislation has not yet received Royal Assent at the time of writing, businesses should begin preparing now to ensure payroll systems, onboarding processes and cashflow are ready ahead of the 1 July 2026 start date.
Introduction of “Qualified Earnings”
A core component of Payday Super is a new term: Qualified Earnings.
It becomes the basis for calculating your SG obligation. Qualified Earnings include:
ordinary time earnings (OTE),
salary-sacrificed super contributions,
and certain other amounts currently included in salary or wages for SG purposes.
Every employer should assess how their payroll system treats these earnings. While the concept is straightforward, it will require many businesses to revisit their pay codes and classification rules to avoid SG shortfalls.
A new compliance approach from the ATO
To support the transition, the ATO has released draft guidance – PCG 2025/D5 – outlining its compliance model for the first year. Employers will be rated low, medium or high risk depending on how they respond to the new rules.
In simple terms:
Employers who pay on time, or correct issues promptly, will generally fall into the low-risk category.
Employers who fail to update their processes or continue to leave super unpaid are more likely to be subject to ATO review or enforcement action.
The ATO will also have greater visibility than ever before. By matching Single Touch Payroll data with superannuation fund reporting, the ATO can proactively identify missed or late payments and intervene sooner – often before issues escalate.
The message from the ATO is clear:
The days of “fixing it at quarter-end” are over.
Superannuation Guarantee Charge (SGC) is also changing
The penalty framework is tightening.
At present, if super does not reach an employee’s fund within 28 days after the end of a quarter, employers must lodge an SG Statement and pay a non-deductible SG Charge.
From 1 July 2026, employers will face the SGC if the employee’s super fund does not receive the contribution by the required payment deadline – generally seven business days after each payday.
SGC is expensive and time-consuming, and the ATO rarely waives it. With Payday Super, the consequences of missing deadlines become more immediate – and more costly. From 1 July 2026, General Interest Charge (GIC) will apply to the entire SGC amount, which will continue to be non-deductible.
What employers need to do now
While the new rules commence on 1 July 2026, preparations should begin well in advance. Key actions include:
✔ Review your payroll system
Confirm your payroll platform can process super contributions aligned to each pay cycle and supports the new Qualified Earnings calculation.
✔ Move away from the Small Business Super Clearing House
The ATO’s free Small Business Super Clearing House will be phased out by 1 July 2026, meaning employers will need an alternative solution. Speak with your payroll provider, accountant or clearing service early.
✔ Strengthen employee onboarding
Under Payday Super, paying wages without superannuation details will automatically make you non-compliant. Collect and verify this information upfront:
stapled super fund and choice of fund,
employee Tax File Number,
payroll codes aligned to Qualified Earnings.
Doing this at onboarding avoids errors, delays and late contributions.
✔ Update internal processes and educate staff
Payroll, finance, HR and business owners will need clarity on the new payment deadlines and processes.
✔ Consider cashflow impact
Quarterly SG often acted as a natural buffer. That buffer disappears. Review your cashflow forecast and consider payroll scheduling or cash smoothing strategies so super contributions can be met on time, every time.
✔ Monitor legislative updates and ATO guidance
Guidance (including the finalised version of PCG 2025/D5) will continue to evolve in the lead-up to 1 July 2026.
What this means for Australian businesses
Every business will be affected – large, small or micro.
For most employers, the real change isn’t complexity. It’s rhythm.
Super becomes a payroll event, not a quarterly event.
The upside is equally clear: employees’ super is protected, SG non-compliance falls and businesses have greater visibility over obligations as they arise..
Final thoughts
Payday Super represents one of the most significant changes to employer superannuation obligations since compulsory SG was introduced more than three decades ago. With only one full financial year before the new rules take effect, now is the ideal time to review your payroll processes, clearing house arrangements and cashflow planning.
As the legislation progresses and the ATO finalises its guidance, we will continue to share updates and practical insights on how employers can prepare with confidence.
If you’d like support in assessing your payroll setup, updating systems or understanding the financial impact of the changes, our team is here to help you navigate the reform and ensure compliance from day one.
If you have any questions, please contact Resolve on 02 6147 6741 or via hello@resolve-advisory.com.au.
■
