Payday Super

What employers need to know

Payday Super

What employers need to know

Key information

When does it start?

Payday super will be compulsory from 1 July 2026. You can start implementing payday super before this date and many employers are choosing to, so they have time to test systems, refine processes and prepare their cash flow.

How often do I need to pay super?

Every pay run — whether you pay weekly, fortnightly or monthly. You must ensure SG contributions are received by your employees’ superannuation fund within seven business days of payday.

What does this mean for my business?

Non-compliance may result in penalties under the updated SG charge framework. An SG charge will apply to any late or missed payments and the longer the delay, the bigger the penalties. Many employers will have to make SG contributions much sooner than they do currently, meaning cash flow and payroll processes will have to be updated.

Why the change?

The government’s goal is simple — ensure employees receive the super they are entitled to, when they should receive it.

While most employers do the right thing and pay their employees’ SG as required, some employers don’t, and this reform is designed to address the longstanding issue of unpaid and underpaid super.

While these changes are aimed at supporting employees to build their retirement savings faster, there are some benefits for employers too:

Improved efficiency

Integrating super with payroll creates a more seamless, automated process.

Reduced payroll liabilities

Regular super payments lower the risk of accumulating large quarterly payments, streamlining cash flow management. 

Helps you avoid penalties

Timely payments reduce the risk of the Super Guarantee Charge (SGC) and associated admin costs.

Stronger employer reputation

Implementing the system early shows commitment to employee financial wellbeing.

Other important changes

While the key change for employers is that SG contributions must be paid each pay run, there are several other important details within the legislation that employers need to be aware of:

Super calculated on qualifying earnings

The new rules introduce the term ‘qualifying earnings’ (QE). QE means the wages payable to an employee on their pay cycle day. It’ll be used to calculate how much SG employers should pay.

Qualifying earnings are made up of:

  • An employee’s Ordinary Time Earnings (OTE)
  • Amounts of OTE that have been used as part of a salary sacrifice arrangement for super contributions
  • Other amounts which are currently included in an employee’s salary or wages for SG.

Changes to the Super Guarantee Charge (SGC)

From 1 July 2026, there are stronger compliance, reporting and penalty regimes. Employers that don’t pay their employees’ super in full and on time will be charged interest and penalties.

SG contributions must typically be received by your employees’ super fund within 7 business days of payday. If payments are missed, late or incomplete, the SGC will apply and will increase the longer the contribution is not paid in full.

Employers may also face extra charges and fees if they don’t pay all super entitlements within 28 days of receiving a notice from the ATO.

Closure of the Small Business Clearing House

The ATO’s Small Business Superannuation Clearing House (SBSCH) will be phased out.

  • Closed to new users from 1 October 2025
  • Fully retired by 1 July 2026

Small businesses should begin transitioning to another solution. Vision Super offers a compliant clearing house solution and is ready to help.

The new rules do include some exceptions to help employers onboard new employees. There is an exception to the seven business days rule for paying super contributions when an employer is contributing to a superannuation fund for the first time for an employee (including new employees).

Employers have 20 business days (starting from the day after you pay a new employee’s wages or salary) for their super fund to successfully receive their first super contribution payment.

Getting your business ready

Your Payday Super preparation checklist

  1. Understand the legislation, timeline and employer obligations.
  2. Confirm your payroll system is Payday Super ready.
  3. Map your pay cycles and review cash flow impacts.
  4. Update internal reporting, reconciliations and procedures.
  5. Validate employee super fund details and TFNs.
  6. Adjust employment contracts if needed.
  7. Train payroll staff and communicate changes to employees.

What are the benefits for your employees ?

  • Super paid with every pay — reducing delays and unpaid contributions.  

  • Greater compounding growth — frequent contributions mean balances begin working harder, sooner. 

  • Better long-term outcomes — younger workers in particular can see meaningful benefits over time. 

  • Improved visibility — employees can track payments more easily. 

  • Fewer lost or unclaimed amounts — frequent payments reduce mismatches and data issues.

We’re here to help

If you’d like support preparing for Payday Super, your Vision Super Client Relationship Manager is here to help.

You can also call us on 1300 304 947 (Monday to Friday, 8:30am–5pm AEST).

Scheduled maintenance

Our secure websites will undergo scheduled maintenance on Saturday, 21 February 2026 between 6:00am and 8:00am. We apologise for any inconvenience this may cause.