Payday super cash flow calculator for Australian employers
From 1 July 2026, super must be paid with every payroll run — not quarterly. Estimate your cash flow impact, per-cycle superannuation obligations and late payment penalties with this free tool.
12%
SG rate from 1 Jul 2025
7
Business days to pay super
1 Jul
Payday Super start — 2026
$270,830
Annual MSCB cap 2026–27
Cash flow impact inputs
Cash flow impact estimate
Enter your payroll details and click calculate
Additional working capital needed
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Cash previously "floated" until quarterly deadline — now needed every pay cycle
Super per pay cycle
—
Annual super obligation
—
Weekly super amount
—
Payment deadline
7 business days
What is "additional working capital"?
Under the old quarterly system, employers could accumulate super cash over 13 weeks before paying it out. Under Payday Super, that float is gone — you need the cash available within 7 business days of every payday. This figure shows how much extra liquidity your business needs to have ready.
This calculator provides general estimates for planning purposes only and does not constitute legal, tax, or financial advice. Calculations are based on publicly available information about Australia's Payday Super legislation effective 1 July 2026.
The SGC penalty tab uses the ATO General Interest Charge (GIC) rate of approximately 10.61% p.a. — this rate is set quarterly by the ATO and may change. Actual superannuation obligations depend on individual employment arrangements, applicable awards, and ATO rulings.
Always verify your obligations with the ATO or a qualified payroll professional before making financial decisions.
What is payday super?
Payday Super is one of the most significant changes to Australia's superannuation system in decades. From 1 July 2026, employers must pay superannuation contributions at the same time as wages — within 7 business days of each payday — rather than once per quarter as is currently required.
The change is designed to reduce the risk of unpaid super, protect employees' retirement savings, and bring Australia's super system in line with modern payroll practices. The Fair Work Ombudsman has confirmed the reform applies to all employers covered by the Superannuation Guarantee framework.
For most small and medium businesses, the shift from quarterly to per-payroll super is not just a compliance change — it is a cash flow event. The quarterly super payment schedule allowed employers to hold super funds in their accounts for up to 13 weeks before remitting. That buffer disappears under Payday Super.
Key payday super dates
- 1 October 2025 — Small Business Superannuation Clearing House (SBSCH) closes
- 1 July 2026 — Payday Super mandatory for all employers
- 7 business days — Maximum time from payday to super received by the fund (20 business days for new employees' first contribution)
- 12% SG rate — Applies from 1 July 2025 (the currently legislated rate)
- 1 July 2026 – 30 June 2027 — ATO PCG 2026/1 transitional relief: low-risk employers making genuine efforts to comply are unlikely to face ATO-initiated reviews during the first year, under current ATO guidance
How super is calculated under payday super
The formula for calculating super under Payday Super is straightforward: 12% of an employee's qualifying earnings per pay cycle. What has changed is the earnings base used for the calculation.
Previously, super was calculated on Ordinary Time Earnings (OTE) — a concept that excluded certain types of pay such as overtime. Under Payday Super, the ATO introduces a new concept called Qualifying Earnings (QE). For most employees, QE and OTE will produce similar or identical results, but there are important nuances for commission-based employees, those receiving regular allowances, and casual workers.
| Payment type | Counts as QE? | Notes |
|---|---|---|
| Regular wages / salary | Yes | Core ordinary time earnings |
| Casual loading | Yes | Included in qualifying earnings |
| Shift loadings (ordinary hours) | Yes | Where paid for ordinary hours |
| Commissions (including out-of-hours) | Yes | All commissions included under QE — broader than OTE |
| Salary sacrifice to super | Yes | Counted as if paid to employee — new inclusion under QE |
| Overtime pay | Generally no | Excluded in most cases — confirm with ATO |
| Workers' compensation (while on leave) | Generally no | Generally not qualifying earnings — confirm with ATO |
Maximum Super Contribution Base (MSCB) — new annual cap from 2026–27
The MSCB changes from a quarterly limit of $62,500 (2025–26) to an annual cap of $270,830 from 1 July 2026. Super is only owed on qualifying earnings up to this annual threshold — employers are not required to contribute on earnings above this amount.
Read our detailed guide on qualifying earnings for Payday Super for a full breakdown by employment type, including casual workers and commission-based staff.
The 7-day payment deadline explained
Under Payday Super, super contributions must be received by the employee's super fund within 7 business days of payday. This is not 7 calendar days — weekends and public holidays do not count. The clock starts on the day employees are paid (the "Qualifying Earnings Day"), not the day the employer initiates the transfer.
This distinction is critical for SuperStream processing timing. Contributions submitted to a clearing house typically take 1–3 business days to reach the super fund. Employers who wait until day 5 to submit may miss the deadline if processing takes longer than expected. Best practice is to initiate super payments within 2–3 business days of payday.
Exception for new employees: The first contribution for a new employee has a 20-business-day deadline — providing time to identify their stapled super fund or set up a fund account before payment is required.
SuperStream timing: practical example
Day 0 — Payday
Wages paid to employees. 7-business-day clock starts.
Day 2–3
Employer submits super via SuperStream or clearing house.
Day 4–5
Clearing house processes and forwards to super fund.
Day 6–7 — On time
Fund receives contribution within 7 business days — timing is met.
What happens if you miss the deadline?
Missing the 7-business-day deadline triggers the Super Guarantee Charge (SGC) — the ATO's penalty mechanism for non-compliant super payments. The SGC structure changes fundamentally from 1 July 2026. The new components are:
- Super shortfall: The unpaid or late amount, calculated on qualifying earnings (QE)
- Notional earnings: The ATO's General Interest Charge (GIC) rate — currently ~10.61% p.a. — compounded daily on the shortfall from the due date until payment
- Administrative uplift: 60% of the combined shortfall and notional earnings (reduced to 20% with a Voluntary Disclosure Statement filed before ATO assessment)
- Post-assessment late payment penalty: 25% of the unpaid SGC amount if it remains unpaid 28+ days after ATO assessment (50% for a second offence within 24 months) — this penalty is generally not tax deductible and is rarely remitted
Worked example — $5,000 shortfall, 30 days overdue
Compare: the old quarterly SGC formula on the same shortfall would have been approximately $5,041 (10% fixed + $20 admin fee). The new 60% uplift makes late payment significantly more costly.
Under Payday Super, the SGC shortfall, notional earnings, and administrative uplift are expected to be tax deductible — a significant change from the old quarterly system where SGC was entirely non-deductible. Only the GIC on unpaid SGC post-assessment and the 25% late payment penalty are expected to remain non-deductible. Confirm your specific tax treatment with a qualified adviser.
Employers who voluntarily disclose a shortfall to the ATO before it is identified may receive a significant reduction in the administrative uplift — from 60% down to as low as 20%. Use the Late payment penalty tab above to model specific scenarios.
How to prepare your business for payday super
With the 1 July 2026 deadline approaching, businesses should begin preparing now. The changes require updates to payroll systems, cash flow planning, and superannuation fund arrangements. Below is a practical checklist — see our full Payday Super employer checklist for a complete implementation guide.
5 immediate steps for employers
- 1Run this cash flow calculator — understand how much additional working capital your business will need from July 2026.
- 2Review your payroll software — confirm it will support automatic super submission via SuperStream with each pay run.
- 3Replace SBSCH if you used it — the Small Business Superannuation Clearing House closed 1 October 2025. Arrange an alternative clearing house immediately.
- 4Update cash flow forecasts — model super as a fixed cost each pay cycle, not a quarterly lump sum.
- 5Verify qualifying earnings rules for your workforce — particularly for casual, commission-based, and seasonal employees. Check the ATO's qualifying earnings guidance for definitive treatment of specific pay types.
Which industries are most affected?
Payday Super affects all employers, but the cash flow impact varies significantly by industry. Businesses with large casual workforces, irregular revenue cycles, or long client payment terms will feel the change most acutely.
| Industry | Cash flow risk | Key factor |
|---|---|---|
| Hospitality & retail | High | Large casual workforce; fluctuating weekly payroll |
| Construction & trades | High | Long client payment terms (30–90 days); project-based cash flow |
| Healthcare & aged care | Medium | High headcount; government funding timing gaps |
| Professional services | Medium | Invoice-based revenue; 30–60 day debtor cycles |
| Retail (large, regular revenue) | Lower | Daily revenue offsets weekly super obligation |
Businesses using integrated payroll and rostering software are better positioned for the transition, as they can automate super submission with each pay run and track qualifying earnings in real time.
For existing payroll guides and preparation resources, see our EOFY payroll guide and Payday Super for casual workers. For a definition of the key terms, see the Payday Super glossary entry and the superannuation guarantee definition.
Automate Payday Super compliance with RosterElf
Connect rostering with payroll to calculate and submit super automatically each pay run — no manual tracking required.
Free calculator
Great for planning and understanding your obligations
- Cash flow impact estimates
- Per-payroll super amounts
- SGC penalty estimator
- No signup required
- Automatic super submission (SuperStream)
- Qualifying-earnings tracking
- Payroll export (Xero & MYOB)
- Compliance audit trail
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- Time & attendance (GPS & photo)
- Award interpretation & penalties
- Payroll export (Xero & MYOB)
- HR Hub with employee profiles
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Payday super calculator FAQs
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Payday Super is a reform that requires Australian employers to pay superannuation contributions with each payroll run, rather than quarterly. From 1 July 2026, super must be received by the employee’s fund within 7 business days of payday. See the ATO’s Payday Super guide for full details.
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Qualifying Earnings (QE) is the new earnings base for calculating super under Payday Super, replacing the previous Ordinary Time Earnings (OTE) concept. QE generally includes regular wages, commissions, allowances and most shift loadings. It excludes overtime pay in most cases. The ATO provides detailed guidance on what counts.
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Yes. Payday Super applies to all employees who are entitled to superannuation, including casual employees. For most adult employees there is no minimum earnings threshold — super applies from the first dollar earned. Employees under 18 working fewer than 30 hours per week are generally exempt. Read our full guide on Payday Super for casual workers.
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Under Payday Super, super contributions must be received by the employee’s super fund within 7 business days of payday. “Business days” excludes weekends and public holidays. Because SuperStream processing takes 1–3 business days, employers effectively need to submit contributions by day 4–5 after payday. For new employees, the first contribution has a 20-business-day deadline.
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SuperStream is the government-mandated electronic system for sending super contributions and employee data to super funds. Under Payday Super, contributions must flow through SuperStream (or an equivalent clearing house) to ensure funds receive payment within the 7-business-day window. Most modern payroll software handles SuperStream submission automatically.