From 1 July 2026, employers must pay superannuation with every pay run — not quarterly. For businesses that rely on casual staff, this is the most significant payroll compliance change in years. Casual workers already attract super on all ordinary time earnings, but the payday super reform tightens the timeline from months to days. Every shift, every pay cycle, every week: super must now reach your employee's fund within 7 business days of payday or you face an ATO Superannuation Guarantee charge.
Businesses in hospitality, retail, healthcare, and events — industries where casual rosters change weekly and shift loadings vary constantly — face the biggest operational adjustment. Your payroll integration must now handle super on every pay run, calculated correctly on ordinary time earnings including loadings, and remitted to the right fund on time. This guide explains exactly what changes, how super works for casual workers, and what you need to do before the July 2026 deadline.
For a broader look at managing casual and permanent teams, see our guide to managing casual and permanent rosters.
Quick summary
- Payday super starts 1 July 2026 — super must be paid with every pay run, reaching the fund within 7 business days
- Casual workers get 12% SG on all ordinary time earnings including base rate, casual loading, and shift loadings
- The Small Business Superannuation Clearing House closes 1 July 2026 — you must transition to an alternative clearing house before then
- Missing the 7-day window triggers an SG charge — unpaid super plus interest, not tax-deductible
What is payday super?
Payday super is a reform to how and when employers pay superannuation contributions. Under the old system, employers could hold super and pay it quarterly — up to 28 days after the end of each quarter. This meant an employee who started work in July might not see their first super contribution until late October.
From 1 July 2026, that changes. Super must be paid at the same time as wages, with contributions reaching the employee's nominated super fund within 7 business days of payday. The change was legislated before the 2026-27 Federal Budget, which confirmed the start date and introduced enforcement funding for the ATO's Tax Integrity Program.
For the official rules, see the ATO payday super guidance and the Fair Work Ombudsman payday super announcement.
Are casual workers entitled to super?
Yes — casual employees are entitled to the same superannuation guarantee as full-time and part-time staff. The rate is 12% of ordinary time earnings, and it applies from the very first dollar earned.
One of the most important recent changes was the removal of the $450 monthly earnings threshold from 1 July 2022. Before that date, casual workers who earned less than $450 in a calendar month were not entitled to super. That exemption no longer exists. Every casual worker now earns super on all ordinary time earnings regardless of how many shifts they work or how small their weekly pay is.
Eligible casual workers
- Adults earning any amount (no $450 threshold)
- Workers under 18 who work more than 30 hours per week
- Casuals on any award, agreement, or contract
- Domestic workers employed more than 30 hours per week
Not entitled to super
- Workers under 18 working 30 hours or fewer per week
- Non-resident employees working for foreign employers
- Domestic workers employed fewer than 30 hours per week
- Employees covered by a bilateral social security agreement
What counts as ordinary time earnings for casual workers?
Super is calculated on ordinary time earnings (OTE), not total gross pay. For casual workers, getting this calculation right is critical — and one of the most common areas of underpayment. Many employers mistakenly calculate super only on the base hourly rate, leaving out components that are legally required to be included.
Included in OTE (super must be paid on these)
- Base hourly rate
- Casual loading (typically 25%)
- Evening and afternoon shift loadings
- Weekend and public holiday penalty rates
- Most general allowances and bonuses
- Commissions paid as regular earnings
Not included in OTE (no super required)
- Overtime hours (where clearly distinguishable from ordinary hours)
- Expense reimbursements
- Annual leave, personal leave, or long service leave payments on termination
- Certain fringe benefits
The shift loading inclusion is particularly important for hospitality and retail businesses. A casual worker on a weekend penalty rate of 175% has a higher OTE for that shift, and the 12% super must be calculated on the full penalty rate — not just the base rate. Businesses that exclude loadings from the super base are underpaying super and risk SG charges and back-payment obligations when the ATO investigates.
The overtime exclusion applies only when overtime is clearly identifiable. If your casual staff regularly work the same number of hours each week and those hours are simply described as "ordinary hours" in their roster, the ATO may treat them all as OTE. Consult your payroll provider if you are unsure how to classify hours under your specific award.
What payday super changes for casual workers
Before 1 July 2026, employers could accumulate super and pay it quarterly. For casual workers — who may leave jobs frequently, work across multiple employers, or have irregular income — this meant super often arrived months after it was earned. Under payday super, contributions must reach the fund within 7 business days of payday, giving casual workers much more visibility and security over their retirement savings.
Before 1 July 2026
- Super paid quarterly — up to 28 days after quarter end
- Casuals who left a job may not see super for months
- Hard to track whether super was actually paid
- SBSCH available as ATO clearing house for small business
- Super was a quarterly cash flow event
From 1 July 2026
- Super paid with every pay run — weekly, fortnightly, or monthly
- Contributions reach fund within 7 business days of payday
- Workers can track super in near real-time via myGov or super app
- SBSCH closes — employers need alternative clearing house
- Super becomes an ongoing cash flow commitment with each pay run
What employers must do from 1 July 2026
The payday super change creates five distinct obligations for every employer, each of which requires advance preparation. For businesses with casual staff across multiple sites or awards, all five need to be in place before the first pay run after 1 July 2026.
Pay super with every pay run
Super must be calculated and submitted with each payroll cycle. If you pay weekly, super is due weekly. If fortnightly, super is due fortnightly. There is no longer a quarterly buffer. Your payroll software must be configured to calculate super on every pay run — not batch it for later.
Meet the 7-business-day deadline
Contributions must reach the employee's nominated super fund within 7 business days of the payday. This is not 7 business days from when you submit — it is 7 business days from when wages hit the employee's account. Processing time through your clearing house must be factored in.
Transition away from the SBSCH
The ATO's Small Business Superannuation Clearing House (SBSCH) closes on 1 July 2026. If you currently use it, you must move to an alternative SuperStream-compliant clearing house before that date. Check with your payroll provider or super fund for options. See the AustralianSuper payday super guide for clearing house options.
Correctly classify OTE in STP phase 2
Under Single Touch Payroll Phase 2, each payment type must be correctly flagged as OTE or non-OTE. Super is only calculated on OTE-flagged amounts. If shift loadings are incorrectly flagged as non-OTE in your system, super will be undercalculated. Review your STP phase 2 configuration before 1 July 2026.
Plan for the cash flow change
Super is no longer a quarterly cost — it flows out with every pay run. For businesses that relied on holding super for 3 months as working capital, this is a meaningful cash flow adjustment. Build super into your weekly payroll cash flow forecast well before July 2026.
SG charge: the cost of missing the deadline
If super does not reach the employee's fund within 7 business days of payday, the ATO applies a Superannuation Guarantee charge. This includes the unpaid super amount, an interest component calculated from the payday date (not the due date), and an administration fee. Unlike regular super contributions, the SG charge is not tax-deductible.
Why irregular casual rosters are the biggest compliance risk
Permanent employees have predictable pay runs — the same hours, the same rate, the same super calculation each fortnight. Casual workers are the opposite. Shifts vary week to week. Loadings change depending on when those shifts fall. Staff may work two shifts one week and ten the next. Under quarterly super, these variations could be smoothed out over three months. Under payday super, every pay event must be correct.
Three specific risks arise with casual rosters under the new rules:
Wrong OTE classification
If your rostering system doesn't classify shift types correctly, your payroll export will flag the wrong earnings as OTE. Evening loadings and weekend penalties are OTE — if they're excluded, every pay run is underpaying super.
Manual processes can't keep up
Businesses that manually match timesheets to payroll and then manually submit super face the highest risk of missing the 7-day window. A few late approvals or a data-entry error can push super past the deadline. See our guide on payroll errors from bad timesheet data.
Small contributions missed
Since the $450 threshold was removed, even a casual working one 4-hour shift earns super. Under quarterly super, these tiny amounts were batched. Under payday super, they must be remitted every pay cycle — even when the dollar amount is small.
The solution is a clean, automated pipeline from roster to timesheet to payroll export. Rostering software that classifies shift types correctly — ordinary hours vs overtime, weekday vs weekend — feeds accurate OTE data into payroll. Time and attendance tools that capture actual hours worked eliminate the gap between what's rostered and what's paid. Without this pipeline, the 7-day deadline is nearly impossible to meet consistently at scale.
For guidance on structuring your payroll timing around a tight deadline, see our guide on payroll cut-off timing. Payday super deadlines make cut-off discipline more important than ever.
Employer checklist: what to do before 1 July 2026
Use this checklist to confirm your business is ready for payday super. Businesses with large casual workforces should complete these steps before June to allow time to test and fix issues.
Confirm your payroll software handles per-run super
Check with your payroll provider that super is calculated and submitted with every pay run — not batched quarterly. Ask specifically how their system handles the 7-day deadline and SuperStream submission timing.
Set up a SuperStream-compliant clearing house
If you use the SBSCH, you must transition before 1 July 2026. Contact your super fund or payroll provider to set up an alternative. Test the new clearing house before the switchover date to ensure contributions reach funds correctly.
Audit your OTE classification
Review how each pay component is classified in your payroll system. Verify that casual loading, evening shift loadings, and weekend penalty rates are flagged as OTE. If loadings are excluded from OTE, correct this before your next pay run or you will be underpaying super.
Update STP phase 2 settings
Ensure all payment types are correctly coded in STP phase 2 — OTE vs non-OTE. Super is calculated only on OTE-coded amounts, so incorrect coding directly causes underpayment. Your payroll provider should be able to run a report showing how each pay component is classified.
Adjust your cash flow forecast
Super is no longer a quarterly cost. Model what your weekly or fortnightly super liability looks like and ensure your operating account can absorb it alongside wages. For businesses with high casual headcount, this can be a significant working capital adjustment.
Review past casual super records
Before the new rules begin, audit your casual super records for the past two years. Look for gaps in contributions, incorrect OTE calculations, or periods where loadings were excluded. Self-correcting now is far cheaper than an ATO SG charge later. See our guide on EOFY payroll audit preparation for a reconciliation checklist.
For a full EOFY payroll checklist including super reconciliation, see our guide on how to complete EOFY payroll.
How RosterElf helps with payday super compliance
Accurate super under payday super rules starts with accurate rostering and timesheets. RosterElf connects the roster to the payroll export so every shift — including its loading type — is correctly captured and exported, giving your payroll system the right OTE data every pay run.
Shift type classification
Rosters in RosterElf classify shifts by time and day, so weekday, evening, and weekend shifts are automatically distinguished. This flows directly into the payroll export — no manual re-classification needed.
Award compliance built-in
Penalty rates and casual loadings are applied automatically based on the applicable award and shift time. This means OTE is calculated correctly at the source — before it reaches payroll.
Timesheet to payroll in minutes
Approved timesheets export directly to Xero, MYOB, and other payroll systems. The faster this pipeline runs, the more time you have to submit super within the 7-business-day window.
Complete audit trail
Every roster, shift approval, and timesheet is timestamped and stored. If the ATO ever queries a super calculation, you can pull the full record for any pay period instantly.
Casual workforce visibility
See all active casual staff, their shifts, and their hours across sites in one view. No casual falls through the cracks — every worker's OTE is captured and exported each pay cycle.
Workforce analytics and reporting
Run workforce reports by employee, site, or pay period to verify hours and earnings before payroll is processed. Catch OTE errors before they become super errors.
Frequently asked questions
Do casual workers get payday super?
Yes. From 1 July 2026, casual workers receive super contributions with every pay run. Employers must ensure contributions reach the employee's nominated super fund within 7 business days of payday. Casuals are entitled to the same 12% superannuation guarantee as permanent employees, provided they meet eligibility requirements (adults, or under-18s working more than 30 hours per week).
What is payday super and when does it start?
Payday super is a legislative reform that requires employers to pay superannuation contributions at the same time as wages rather than quarterly. It starts on 1 July 2026. Contributions must reach the employee's super fund within 7 business days of payday. The previous system allowed quarterly payment up to 28 days after the end of each quarter.
How is super calculated for casual employees?
Super for casual employees is calculated at 12% of ordinary time earnings (OTE). OTE includes the base hourly rate, casual loading (25%), and shift loadings such as evening and weekend penalty rates. It does not include overtime where those hours can be clearly distinguished. Since 1 July 2022, there is no minimum monthly earnings threshold — casuals earn super on every dollar of OTE regardless of how little they work in a given month.
Does super get paid on shift loadings for casual workers?
Yes. Shift loadings — including evening penalties, weekend rates, and public holiday rates — are included in ordinary time earnings and are subject to the 12% superannuation guarantee. Employers who calculate super only on the base rate and exclude loadings are underpaying super and risk an SG charge from the ATO.
What happens if an employer misses the 7-day super deadline?
Missing the deadline triggers a Superannuation Guarantee charge from the ATO. The SG charge includes the unpaid super amount, an interest component calculated from the payday date, and an administration fee. Unlike regular super contributions, the SG charge is not tax-deductible. Employers must lodge an SG charge statement with the ATO.
What is ordinary time earnings for a casual worker?
Ordinary time earnings (OTE) for a casual worker includes their base hourly rate, casual loading (typically 25%), and shift loadings for evenings, weekends, and public holidays as required by their award. It does not include overtime that is clearly additional to regular hours, expense reimbursements, or certain fringe benefits. OTE is the figure on which the 12% superannuation guarantee is calculated each pay run.
Does removing the $450 threshold affect payday super for casuals?
Yes. Since 1 July 2022, the $450 monthly threshold that exempted low-income casuals from super was removed. Combined with payday super from 1 July 2026, even casuals working a single shift each fortnight will have super due with that pay run. Employers with large casual workforces should expect a higher volume of smaller super contributions that must each be remitted on time.
Related RosterElf features
Get your payroll ready for payday super
RosterElf helps Australian businesses capture accurate shift data, classify OTE correctly, and export clean payroll every pay run — so super is calculated right the first time.
- Automatic shift loading and casual loading classification
- Direct payroll export to Xero and MYOB every pay run
- Complete timesheet audit trail for ATO compliance
Disclaimer: This article provides general guidance only and does not constitute financial, tax, or legal advice. Superannuation rules and deadlines change regularly. Always verify current requirements with the Australian Taxation Office and consult qualified professionals for advice specific to your business.
