For as long as most of us can remember, paying superannuation has worked on a quarterly cycle. Wages are paid every week or fortnight, and super is paid up to 28 days after the quarter ends. It’s been the rhythm of Australian payroll.
That rhythm is about to change.
From 1 July 2026, employers must pay superannuation guarantee at the same time as salary and wages, with funds receiving contributions within seven business days of payday.
What’s actually changing
The fundamentals stay the same. The rate is still 12%. But the mechanics shift significantly:
Payment timing: If you pay staff fortnightly, superannuation must be paid fortnightly. Weekly wages mean weekly super. The contributions must be received by the employee’s fund within seven business days of payday.
Calculation base: Super moves from being calculated on ordinary time earnings (OTE) to “qualifying earnings” (QE), a new term that brings together OTE and other payments. Worth checking with your accountant what this means for your specific payroll.
Reporting requirements: Single Touch Payroll must now report both qualifying earnings and super liability, not just one or the other.
The clearing house is closing
The ATO’s Small Business Superannuation Clearing House closed to new users on 1 October 2025. Existing users have until 30 June 2026 to transition to an alternative super payment solution.
Some changes work in your favour
It’s not all additional burden. The Super Guarantee Charge system is being overhauled, and some elements actually improve:
The SGC becomes tax-deductible from 1 July 2026. Currently, it’s not deductible at all. Interest now compounds daily at the general interest charge rate rather than a flat 10% per annum. And the administrative penalty can be reduced if you make a voluntary disclosure, with amounts varying based on your compliance history (25% or 50%, depending on prior penalties, down from up to 200%).
The system is also getting better error messaging through SuperStream, helping you identify and fix issues faster. A new member verification process will confirm whether a fund can match an employee contribution before you make it, reducing rejected payments.
What to do now
The ATO has published a detailed checklist and resources at ato.gov.au/paydaysuper.
Their recommended timeline:
Now through March: Understand how the changes affect your business. Review payroll systems and super processes. Check employee fund details are correct.
April through June: Confirm your payroll software is ready. If you’re using the clearing house, complete your transition. Address any super fund error messages promptly.
Key dates: The final quarterly super payment for March is due 28 April. The last quarterly payment for June is due 28 July. From 1 July 2026, it’s payday super.
A practical compliance approach
The ATO has indicated they’ll take circumstances into account in the early months, particularly where delays are caused by software or fund issues beyond an employer’s control. That’s not a pass to delay, but it is recognition of the scale of this change.
Emma Rosenzweig, ATO Deputy Commissioner, was clear: “We know that payday super will mean that some businesses do need to change the way they manage their cashflow.”
For businesses already paying super more regularly than quarterly (around 40% of Australian employers), this won’t be dramatic. For others, particularly those with irregular cash flow, the adjustment requires planning.
Your next step
If you’re uncertain about how payday super will affect your business, particularly around cashflow management, payroll system readiness, or the shift from OTE to qualifying earnings, we’re here to help. For clarity’s sake, it’s worth having that conversation now rather than in June.
The ATO’s full fact sheet, Payday Super: Key changes to super guarantee, provides detailed technical guidance. You can contact our office at 1300 265 722 to discuss your specific situation.
