Payday super employer checklist 2026 | RosterElf

From 1 July 2026, every Australian employer must pay superannuation with every pay run — not quarterly. The new Payday Super rules require super contributions to reach the employee's nominated fund within 7 business days of payday. Miss that window and the ATO applies a Superannuation Guarantee Charge (SGC) that is not tax deductible.

This checklist walks you through every step you need to take before 1 July 2026 — from testing your payroll software and replacing the SBSCH to planning your cash flow and verifying your STP Phase 2 configuration. Use our Payday Super cash flow calculator to model your exact per-cycle super obligation before you start.

For guidance specific to casual staff — who now attract super on every pay run with no minimum threshold — read our guide on Payday Super for casual workers.

What is changing on 1 July 2026

Under the current system, employers pay superannuation quarterly — within 28 days of the end of each quarter. This means an employee whose quarter ends 30 June has their super paid by 28 July. That buffer disappears on 1 July 2026.

From that date, super must be received by the employee's super fund within 7 business days of payday. The obligation is measured from when wages hit the employee's account, not from when you submit the payment. Processing time through your clearing house must be factored in.

The superannuation guarantee rate of 12% is unchanged — this reform is entirely about timing and frequency. The earnings base also changes: ordinary time earnings (OTE) is replaced by Qualifying Earnings (QE) as the super calculation base, though for most employees the difference is minor.

For the definitive ATO guidance on the reform, see the ATO Payday Super overview.

10-step payday super employer checklist

Work through each step before 1 July 2026. Businesses with large or variable workforces should aim to complete these steps by the end of May to allow time for testing.

Step 1: calculate your cash flow impact

The single biggest operational change for most businesses is cash flow. When super moves from quarterly to per-payrun, the working capital float you previously held — up to three months of super obligations — disappears. Use the Payday Super cash flow calculator to model your weekly or fortnightly super outflow based on your headcount, pay rates, and pay cycle frequency.

For seasonal businesses or those with variable casual headcounts, run the calculation at both peak and off-peak staffing levels so you understand your full range of exposure.

Step 2: confirm payroll software supports per-payroll super

Many payroll systems have historically allowed super to be batched and submitted quarterly. Under Payday Super, this workflow is no longer compliant. Ask your payroll provider specifically whether their system can calculate super on every individual pay run and submit it through SuperStream with each payroll event.

Your payroll integration must also correctly apply the Qualifying Earnings rules to each payment type — including casual loadings, shift loadings, and allowances — so super is calculated on the right base.

Step 3: replace the SBSCH

The ATO's Small Business Superannuation Clearing House closed on 1 October 2025. If you were still using it after that date, you need an alternative immediately. Options include clearing houses offered by major super funds (many are free for fund members), or SuperStream-compatible payroll software that handles submission directly.

Do not wait until June 2026 to switch — clearing house transitions take time, and you need to test that contributions reach funds correctly before the July deadline. See step 9.

Step 4: update payroll settings for qualifying earnings

Qualifying Earnings (QE) replaces ordinary time earnings as the super calculation base under Payday Super. For most employees the practical difference is small, but you should review how each pay component is classified in your payroll system. Ensure casual loadings, shift loadings, and regular allowances are correctly flagged as QE-included.

Step 5: establish a super payment schedule

Map your payroll calendar to a super submission calendar. If you pay weekly, super must be submitted the same day — or at the very latest the following business day — to ensure it reaches the fund within 7 business days. If fortnightly, build a fortnightly super schedule. Talk to your clearing house about their typical processing times so you know exactly how far in advance you need to submit.

Step 6: brief your finance team

Finance teams and bookkeepers who managed super as a quarterly task need to understand that it is now a per-payrun obligation. Build super submission into payroll processing checklists and assign clear responsibility for monitoring fund receipt confirmation.

Step 7: adjust working capital and cash reserves

Super now flows out with wages. If your wages are paid from an operating account, ensure that account holds enough to cover both wages and super on every pay date. Businesses that manage cash flow tightly — particularly invoice-funded or seasonal businesses — should discuss this change with their accountant or financial adviser before July.

Step 8: verify employee super fund details

Super paid to an incorrect fund will not reach the employee's account within 7 business days, triggering an SGC even if you submitted on time. Audit your employee records now: check that every employee has a valid super fund, member number, and BSB/account combination on file. Pay particular attention to new starters and casual staff who may have provided incomplete details.

Step 9: test your SuperStream submission

Before 1 July 2026, run a test submission through your new clearing house (or your existing one if you have already transitioned). Confirm that a test contribution reaches the destination fund within the expected timeframe. This gives you visibility of any technical issues while there is still time to resolve them. Your payroll software provider or super fund should be able to assist with a test run.

Step 10: set up monitoring for fund receipt confirmation

Submitting on time is not enough — you need to confirm that super was received by the fund within 7 business days. Most clearing houses provide a receipt or confirmation report. Build this check into your post-payroll process so that any delays or rejections are caught immediately, not weeks later when an ATO audit reveals unpaid super.

Payroll system readiness for payday super

The most important technical prerequisite for Payday Super compliance is a payroll system that can calculate and submit super with every individual pay run. Not all payroll software was designed for this — many legacy systems batch super for quarterly submission, which will not be compliant after 1 July 2026.

Questions to ask your payroll software provider

Before June 2026, contact your payroll provider and ask:

• Does your system calculate and submit super on every individual pay run?
• How does your system handle the SuperStream submission — directly or via a clearing house partner?
• When will your Qualifying Earnings update be released?
• How will I receive confirmation that super has been received by the fund?
• What is the typical processing time from submission to fund receipt?

If your provider cannot clearly answer these questions, treat that as a red flag and explore alternatives. There are now several payroll platforms with native Payday Super support — including those that integrate directly with rostering and timesheet tools to create a clean end-to-end pipeline.

Cash flow planning for payday super

The shift from quarterly to per-payrun super is primarily a cash flow change. Under the current system, employers hold super for up to 13 weeks before remitting it. That float — which for some businesses represents tens of thousands of dollars — disappears overnight on 1 July 2026.

Use the Payday Super calculator to calculate your per-cycle super obligation based on your headcount and average wages. Then model what your operating account needs to hold on each pay date to cover both wages and super simultaneously.

For broader payroll timing guidance, see the Fair Work Ombudsman's Payday Super employer guidance. For your EOFY payroll process including super reconciliation, see our EOFY payroll guide.

SuperStream and clearing house requirements

SuperStream is the ATO's mandatory electronic standard for super contributions. All super payments must pass through a SuperStream-compliant channel — either payroll software with built-in SuperStream capability, or an external clearing house that is SuperStream-certified.

The 7-business-day Payday Super deadline is measured from payday to fund receipt — not from when you submit to your clearing house. Clearing houses typically take 1–3 business days to process and route contributions to destination funds. This means you effectively need to submit super within 4–6 business days of payday at most, depending on your clearing house's processing time.

What happened to the SBSCH

The Small Business Superannuation Clearing House (SBSCH) was a free ATO-operated clearing house available to businesses with fewer than 20 employees or a turnover under $10 million. It closed on 1 October 2025. If your business was using the SBSCH, you must now have an alternative in place. Options include:

• Major super fund clearing houses — many large funds (AustralianSuper, Hostplus, REST, etc.) offer free clearing house access for employers paying into their fund
• Third-party clearing houses — commercial providers such as Beam (formerly SuperChoice), QuickSuper, and others offer SuperStream-compliant submission services
• Payroll software — platforms like Xero and MYOB have built-in SuperStream capability and can submit super directly without an external clearing house

When evaluating alternatives, ask specifically how quickly contributions typically reach the destination fund after submission. Some clearing houses route through intermediary banks, adding a day or two to processing. Under the 7-day Payday Super rule, that processing time directly reduces your submission window.

Practical guidance for the 7-day rule

A safe approach is to treat the effective submission deadline as day 3 or 4 after payday — not day 7. This gives your clearing house enough processing time to ensure receipt by the fund before the 7-business-day window closes. If a bank holiday falls within the window, it extends the business day count but does not extend your submission deadline relative to the payday date.

STP phase 2 and payday super reporting

Single Touch Payroll Phase 2 (STP Phase 2) requires employers to report each payment type separately — distinguishing ordinary earnings, overtime, allowances, leave loading, and other components in every payroll event. Under Payday Super, this data is more important than ever because super is calculated only on Qualifying Earnings, and the STP Phase 2 income type codes determine which amounts count.

If your payroll system is not correctly configured for STP Phase 2, two problems can arise. First, the ATO's visibility of your super obligations improves under Payday Super — meaning underpayments are easier to detect. Second, incorrect income type codes mean super is calculated on the wrong base, leading to either underpayment (SGC risk) or overpayment (cash flow impact).

For employers managing casual staff on variable hours, getting STP Phase 2 right is particularly important. Variable shifts mean the QE base changes every pay run, and each pay event must be reported with the correct income type breakdown. For more on how this plays out for casual workers specifically, see our guide on Payday Super for casual workers.

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