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The ATO and the federal government have confirmed that Payday Super is now law. From 1 July 2026, employers will be required to pay superannuation guarantee (SG) contributions at the same time they pay employees’ salaries and wages.
What’s changing?
- SG contributions must be paid on each pay-day (often weekly, fortnightly, or monthly) instead of quarterly. Contributions must reach the employee’s fund within 7 business days of pay-day (subject to limited exceptions);
- the concept of “qualifying earnings” (QE) is introduced, SG will be calculated on QE rather than just ordinary time earnings (OTE); and
- The previous SG payment system via the ATO Small Business Superannuation Clearing House will end, the clearing house will close on 1 July 2026.
The change aims to reduce unpaid or late super payments and improve retirement savings outcomes for employees, particularly those in casual, part-time or unstable employment.
For employers and advisers, the shift will likely demand updates to payroll systems, cash-flow planning and compliance procedures.
Businesses need to start preparing now, review payroll and payroll-software readiness, ensure super fund details are correct for all employees, test end-to-end processes, and assess cash-flow implications to ensure smooth compliance from 1 July 2026.
