From 1 July 2026, a range of changes will be made the way employers must pay superannuation to employees. Notable change involves deadlines for super payments and how super guarantee amounts are calculated.
The following changes under Payday Super are listed here:
Deadline for super payments
Super guarantee payments now must be received by an employee’s super fund within 7 business days after pay is distributed. This differs from the current deadline which is within 28 days of the end of the quarter.
Calculating super guarantee amounts
The super guarantee amount is calculated as 12% of qualifying earnings, as opposed to the current 12% of ordinary time earnings.
Qualifying earnings include ordinary time earnings, paid leave, all commissions, bonuses, allowances and salary sacrifice contributions.
Reporting super payments
Both qualifying earnings and super liability are to be reported through Single Touch Payroll.
Late payments and the super guarantee charge
If super guarantees aren’t received by a super fund within 7 business days after payday, a charge will apply.
The ATO will assess the super guarantee charge and calculate it based on qualifying earnings, rather than ordinary time earnings.
The charge is now tax deductible and will compound interest daily at the general interest charge rate.
Penalty rates
Penalty rates now sit at 25% or 50% of the unpaid super guarantee charge, depending on any prior penalties. This differs significantly from the current maximum 200% penalty of the super guarantee charge.
Small Business Superannuation Clearing House (SBSCH)
The SBSH closed to new users on 1 October 2025, however existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super.
Checking employee data and processing payments
Payment and data processing systems will be made more efficient.
Payments will be almost instant rather than take days. Improved error messaging will shorten trouble-shooting time.
New number verification requests will allow employers to confirm that an employee contribution is being accepted into the right super fund when transferring for the first time.
Allocations by super funds
Super funds now only have 3 business days to allocate or return contributions, rather than the 20 business days currently.
Offering employees a stapled fund
Employers can now request details of an employee's stapled super fund from the ATO and offer this to the employee at the same time they provide their choice of fund form, rather than having to present a choice of fund form first.
Action required
Make sure your STP Payroll solution is updated so that Super payments can be made via your Payroll system for all payments due after 1 July. Please contact us if you require any assistance with this.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.
Source: ATO