Get ahead of Payday Super

The Australian Government is changing when employers need to pay super. From 1 July 2026, employers will need to pay super with every pay cycle, with contributions reaching employees’ super funds within seven business days of payday. 

This change means that super payments become a part of every pay run instead of the quarterly cycle that many businesses currently follow. Non-compliance could attract penalties from the Australian Taxation Office. It’s important for businesses to prepare their payroll systems and processes early to ensure they’re prepared for the change.

Read our guide to learn more about what Payday Super means for your business and how you can prepare with confidence.

For more information on the changes to Payday Super, visit the Australian Taxation Office.

What you'll learn

On this page, you’ll learn what Payday Super is, when the changes start and what they could mean for your business. We’ll explain the shift to paying super each payday, the new seven-business-day payment deadline, how qualifying earnings may affect super calculations and the practical steps small businesses can take now to prepare their payroll, cash flow and employee data.

What changes from 1 July 2026?

• Super is paid each payday.
• Super must reach the fund within seven business days.
• Super guarantee stays at 12%.
• Super funds must process contributions within three business days.
• ATO monitoring and penalties are stricter.

What is Qualifying Earnings?

Qualifying Earnings, or QE, is the new earnings base employers will use to calculate super guarantee under Payday Super from 1 July 2026. It replaces Ordinary Time Earnings as the base for super calculations and is designed to create a more consistent way to work out, pay and report super each payday.

For many businesses, QE may be similar to the earnings you already use to calculate super today. However, it’s important to review your payroll categories before the changes begin, as some payment types may need to be treated differently under Payday Super.

In simple terms, QE generally includes payments made for an employee’s ordinary hours of work, as well as certain paid leave, allowances, bonuses, commissions and salary sacrifice amounts that would otherwise qualify for super. It may also include earnings paid to some contractors who are treated as employees for super purposes.

For example, if an employee is paid their ordinary wages, casual loading or commission in a pay run, those amounts may count towards QE. Amounts such as overtime, expense reimbursements or some termination payments may not count, depending on the circumstances.

What this means for your business

Cash flow

Payday Super means super becomes part of every pay cycle, rather than a cost that can be set aside and paid quarterly. For many businesses, this will change the timing of cash outflows and make super a more regular part of day-to-day working capital planning.

Payroll process

Your payroll system and super payment process may need updates before Payday Super begins. This could include changes to payroll settings, clearing house arrangements, contribution files, approval steps and reporting processes.

Because super payments will need to align more closely with wage payments, internal processes may also need to move faster. It’s worth checking who approves pay runs, when payments are released and how quickly payroll errors can be corrected if something goes wrong.

Employee data

Accurate employee data will be important under Payday Super. Fund details, member numbers, unique superannuation identifiers and other payroll information should be complete and up to date before each contribution is made.

Incorrect or missing information can cause payments to be rejected, delayed or sent back for rework. Building regular checks into onboarding and payroll reviews can help reduce errors and give your business more time to fix issues before a payment becomes late.

What small businesses should do now

Checklist:

• Confirm payroll software readiness
• Review employee data
• Update payment workflows
• Forecast cash flow
• Train staff
• Keep watching ATO and software provider guidance.

What happens if super is late?

If super is paid late, your business may need to pay the super guarantee charge, which can include the unpaid super amount, interest and administration costs. Under Payday Super, late or missed payments may be identified sooner because super payments, payroll reporting and fund receipt data are expected to line up more closely.

Daily interest may apply from the day the super should have been paid until the issue is corrected. Late payments can also attract closer ATO scrutiny, especially if they happen repeatedly or don’t match what has been reported through payroll.

If you find an error, act quickly. Check what went wrong, correct the payment or employee details, keep clear records and speak to your accountant, bookkeeper or payroll provider if you’re unsure what to do next. Fixing issues early can help reduce delays, rework and the risk of further penalties.

How to prepare for Payday Super

In this recorded webinar, experts from NAB & Xero explain what Payday Super is and how it may impact businesses. The session also explores: 

• changes to how employers will need to pay employee super from 1 July 2026 
• the potential impacts on payroll 
• how solutions like Xero can help support the transition
• practical tips to help businesses manage their cash flow as super moves to every pay cycle.