Payday Super: Key Changes Coming from 1 July 2026
The Australian Government is making significant changes to how superannuation is paid, with new reforms coming into effect from 1 July 2026. These changes aim to improve the timeliness and accuracy of super payments, ensuring employees receive their entitlements faster.
What’s Changing?
Super to Be Paid on Payday
Employers will be required to pay superannuation guarantee (SG) contributions at the same time as wages and salaries. This means super must be deposited into employees’ funds within seven days of each payday.
New ‘Qualifying Earnings’ (QE) Definition
A new QE framework will be introduced, covering ordinary time earnings (OTE), salary sacrifice super contributions, and other earnings that count towards SG obligations.
Contributions will need to arrive in employees’ super funds within 7 calendar days of payments of QE. QE is a new concept which includes
- ordinary time earnings (OTE)
- salary sacrifice super contributions
- other amounts which are currently included in an employee’s salary or wages for super guarantee.
Superannuation Guarantee Charge (SGC) Updates
Employers who fail to pay super on time will face a revised SGC, which includes:
- Final SG Shortfall – unpaid contributions calculated based on QE.
- Notional Earnings – interest charged on late payments.
- Administrative Uplift – penalties for delayed super payments.
- Choice Loading – extra charges for failing to meet employee fund selection rules.
- General Interest Charge (GIC) – interest applied to unpaid SGC amounts.
- Late Payment Penalty – further penalties if the SGC remains unpaid after 28 days.
- Tax Deductibility – SGC payments will become tax-deductible.
Small Business Super Clearing House (SBSCH) to Close
The SBSCH will be decommissioned from 1 July 2026. Small businesses will need to switch to alternative superannuation payment solutions.
SuperStream and Fund Allocation Enhancements
Super funds will now have three business days (down from 20) to allocate or return unallocated contributions. Updates to SuperStream will improve payment processing and error handling.
Single Touch Payroll (STP) Reporting Updates
Employers will need to report both OTE and super liabilities through Single Touch Payroll (STP), improving visibility and compliance.
Need help with understanding how this will impact you? Feel free to get in touch with us at hello@fourtwelve.com.au. We can also be reached here.
This information is current as at the date of publication and is subject to change. It does not account for any amendments to legislation that may be enacted after this date.
