Payday Superannuation

What is Payday Super?


Payday Super is a major change to Australia’s superannuation system that will require employers to pay their employees’ super at the same time as wages and salaries. Under the current system, employers must pay Superannuation Guarantee (SG) contributions at least quarterly. Payday Super will replace this approach by aligning super payments with payroll cycles, meaning super must be paid each time employees are paid. The reform is designed to improve retirement outcomes for workers by ensuring super contributions are received sooner and reducing the risk of unpaid or delayed super.

The Australian Government has announced plans for Payday Super to commence from 1 July 2026, subject to final legislation.


Payday Super – Key Changes for Employers


The Federal Government’s Payday Super rules are now law, changing how and when employers must pay superannuation. West Currie Consultants can help your business stay compliant.


1. Payment Deadlines


  • From 1 July 2026, super contributions must be paid within 7 days of payday.
  • For new employees, the first super payment can be extended to 20 days.


2. How Super is Calculated


Super will be based on an employee’s qualifying earnings (QE):

  • Ordinary Time Earnings (OTE)
  • Salary sacrifice amounts counted toward super
  • Other amounts currently included for SG


3. Late Payments & Super Guarantee Charge (SGC)


  • SGC will now be assessed by the ATO, not self-assessed.
  • Calculated on qualifying earnings, including:
  • Daily compounding interest at the general interest charge rate
  • Administrative uplift based on your SG history
  • SGC is tax-deductible
  • Penalties start at 25% of unpaid SGC, rising to 50% for repeat issues


4. Clearing Houses & Small Businesses


  • The Small Business Superannuation Clearing House (SBSCH) will no longer be available.
  • Businesses will need to select an alternative super clearing house from 1 July 2026.


5. Other Important Notes


  • Super Choice Forms are still required for new employees.
  • Employers can request stapled super fund details when issuing the Super Choice Form.
  • Super funds now have 3 days to advise and return contributions.


6. How to Prepare


  • Integrate Payday Super into your payroll process now.
  • If using software for super, ensure SG is processed alongside wages.
  • Small businesses should review super clearing house options before July 2026.


West Currie Consultants can guide your business through Payday Super compliance and implementation to make the transition seamless.