From 1 July 2026, Payday Super will legally require superannuation contributions to align closely with each payroll cycle (replacing the current quarterly system in Australia).
If you're an employer, this means tighter timeframes, more frequent payments, and far less margin for error.
What's changing?
From 1 July 2026:
- Super must be received by the employee’s fund within seven business days of payday
- The first payment for a new employee must be made within 20 business days
- Super remains 12%, but will be calculated on Qualifying Earnings (QE) – expanding Ordinary Time Earnings to explicitly include items such as salary sacrifice and commissions
- STP reporting will now require QE and super liability to be reported per pay cycle (increasing ATO visibility)
The goal is to improve transparency and reduce unpaid super.
In practice, it means payroll teams will need to be more precise with earnings calculations, reporting accuracy, and payment timing.
Important: clearing house changes
The Small Business Superannuation Clearing House (SBSCH) closed to new users on 1 October 2025 and will fully cease on 30 June 2026.
Businesses currently relying on SBSCH will need to transition to an alternative solution before Payday Super commences to avoid processing gaps.
This is something employers should be actively reviewing now.
What happens if payments are late?
If contributions aren’t received on time, employers may be liable for the Super Guarantee Charge (SGC).
Under the new framework:
- The ATO assesses the liability (it is no longer self-assessed)
- Interest compounds daily
- Administrative uplifts may apply depending on compliance history
- The SGC remains tax deductible
Compliance will become more immediate – and more visible.
The ATO has also released Practical Compliance Guideline PCG 2026/1 outlining how enforcement will operate in the first year (to 30 June 2027).
What are we doing now?
Xemplo – along with the wider EPG Group – are already preparing for the 1 July 2026 changes by:
- Updating payroll calculations to ensure Qualifying Earnings (QE) are applied correctly
- Preparing STP reporting updates to reflect QE and super liability per pay cycle
- Reviewing clearing house integrations ahead of the SBSCH closure
- Testing payment timing workflows to ensure contributions are processed within the new seven-business-day requirement
- Monitoring ongoing ATO guidance, including first-year compliance settings
Our focus is simple: compliant, seamless processing from day one.
What should you be thinking about?
There’s no immediate action required. However, this is a good time to consider:
- The cash flow impact of moving from quarterly to pay-cycle super payments
- Internal approval processes that could delay contributions
- Any reliance on the SBSCH ahead of its 30 June 2026 closure
The earlier these are reviewed, the smoother the transition will be.
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