Payday Super: what changed for employers on 1 July 2026

Since 1 July 2026, employers pay their employees' super guarantee for each payday instead of once a quarter. This summary sets out the main rules as published by the Australian Taxation Office (ATO), checked on 9 November 2026.

It is general information. How the rules apply to you depends on your payroll arrangements.

What changed

The ATO sets the old and new rules side by side. [1]

Qualifying earnings is a new term. The ATO describes it as including ordinary time earnings, all commissions, salary sacrifice contributions and other amounts that were previously included in an employee's salary or wages for super guarantee. [1]

What has not changed

The ATO lists three things Payday Super does not change. [1]

• Who you pay super for — eligible employees, including independent contractors paid mainly for their labour.
• The rate — still 12%.
• The systems you use to pay super, except the Small Business Superannuation Clearing House, which has closed.

The 7-business-day rule

A contribution is on time if it is received by your employee's super fund, with the information the fund needs to allocate it to the employee's account, within 7 business days after you pay the employee. The ATO calls paying super on payday best practice, because a clearing house or payroll provider needs time to process the payment. [2]

A business day is any day other than a Saturday, a Sunday or a public holiday for the whole of any Australian state or territory — even a state or territory you do not operate in. [2]

When you have longer

The ATO allows more time in some situations, including these. [2]

• New employee or new fund: the first contribution for a new employee, or to a new fund for an existing employee, must be received within 20 business days after payday.
• Out-of-cycle payments: for a bonus, commission or back payment made outside the regular pay cycle, the contribution is due with the one for the employee's next regular payday.
• Exceptional circumstances: the ATO can make a determination for a class of employers affected by a natural disaster or a widespread technology outage. It cannot be issued for one employer's own circumstances.

If a contribution is late

A late contribution makes the employer liable for the super guarantee charge. From 1 July 2026 the charge is assessed by the ATO, is calculated on qualifying earnings, and includes interest that compounds daily at the general interest charge rate plus an administrative uplift amount. Penalties are 25% or 50% of the unpaid charge, depending on any prior penalties. [1]

A late contribution made before the ATO assesses the charge can reduce it, but the interest and administrative components may still apply. [2]

A short check for small employers

1. Confirm how you now pay super — payroll software or a commercial clearing house — and how long a payment takes to reach the fund.
2. Check that your payroll software reports both qualifying earnings and super liability through Single Touch Payroll.
3. Collect super fund details early for new employees; the longer 20-business-day period applies only to the first contribution.
4. Review cash flow. Super now leaves the business with each pay run rather than each quarter.

If you would like your payroll and super set-up reviewed, contact Newage Accounting.