What changes on 1 July 2026
Before Payday Super, employers could accumulate super contributions across each quarter and pay in a single lump sum within 28 days of the quarter end. From 1 July 2026, that model is abolished. Super must now be paid with every payroll run and received by the employee's super fund within 7 business days of each payday.
The superannuation guarantee rate is unaffected — it remains at 12%, the final scheduled rate that took effect on 1 July 2025. The change is about timing and frequency, not the rate. For more background, see the Fair Work overview of Payday Super.
| Feature | Before 1 July 2026 | From 1 July 2026 |
|---|---|---|
| Payment frequency | Quarterly | Each payroll run |
| Deadline | 28 days after quarter end | 7 business days after payday |
| SG rate | 12% (from July 2025) | 12% (unchanged) |
| Earnings base | Ordinary Time Earnings (OTE) | Qualifying Earnings (QE) |
| SBSCH available | Yes (closed Oct 2025) | No |
How the 7-day rule works
The 7-day deadline is measured in business days — weekends and public holidays do not count. The clock starts on payday, not when the employer submits payment to a clearing house. This distinction is critical.
SuperStream processing takes time
Electronic clearing houses typically take 1–3 business days to process and forward contributions to the employee's fund. Best practice is to submit your super payment within 2–3 business days of payday to ensure the fund receives it before the 7-day deadline.
For more detail on the 7-day rule and SuperStream obligations, see the ATO's Payday Super guidance.
Who is affected
Payday Super applies to all Australian employers with employees who are entitled to the superannuation guarantee. This includes:
Employee types covered
- Full-time employees
- Part-time employees
- Casual employees (no minimum earnings threshold)
- Temporary residents working in Australia
Contractors may also be affected
- Contractors paid wholly or principally for their labour may meet the super entitlement test
- Check the ATO's contractor determination tool if unsure
Qualifying earnings
Payday Super introduces Qualifying Earnings (QE) as the new earnings base for calculating super contributions, replacing the previous Ordinary Time Earnings (OTE) concept. For most employees, the practical difference is small, but employers should review their payroll setup.
| Payment type | Included in qualifying earnings? |
|---|---|
| Regular wages and salary | Yes |
| Casual loading (25%) | Yes |
| Shift loadings on ordinary hours | Yes |
| Most allowances | Yes |
| Overtime pay | Generally no |
| Expense reimbursements | No |
| Termination payments | Generally no |
For a detailed breakdown, read our guide on qualifying earnings for Payday Super, or visit the Ordinary Time Earnings glossary entry for a comparison with the previous rules.
Penalties for late payment
Missing the 7-business-day deadline triggers the Super Guarantee Charge (SGC). The SGC is not a minor administrative fee — it is a compound penalty with real financial consequences.
SGC penalty components
- Super shortfall: the unpaid or underpaid amount (calculated on salary and wages, not just qualifying earnings)
- Interest: 10% per annum on the shortfall
- Admin fee: $20 per employee per quarter with a shortfall
- Not tax deductible — unlike regular super contributions
Under Payday Super, SGC exposure increases significantly because it can now be triggered by any individual payroll run, not just a quarterly deadline. Use the Payday Super cash flow calculator to estimate the potential SGC cost for your business.
How to prepare
Employers who act early will find the transition to Payday Super straightforward. Here are the key steps to take before 1 July 2026:
Audit your payroll software
Confirm your payroll platform can trigger a super submission with each pay run and integrate with a SuperStream-compliant clearing house. See RosterElf's payroll integration.
Update your super fund details
Verify that all employee super fund details (USI, member number) are current. An invalid fund detail can delay processing and trigger SGC.
Review your cash flow
Super payments will now leave your account on or just after each payday. If you previously relied on the quarterly float, update your cash flow forecasts now. Use the Payday Super calculator for estimates.
Follow the employer checklist
Walk through the complete Payday Super employer checklist to ensure nothing is missed before the July 2026 start date.
