Australia: Payday Super

Payday Super – Application from 1 July 2026

From 1 July 2026, the Australian Government will implement “Payday Super,” representing one of the most significant 

structural changes to the superannuation system in decades. The reform fundamentally changes the timing, 

calculation and reporting of superannuation guarantee (SG) contributions. 

1. Change in Payment Timing

Currently, employers are permitted to pay superannuation quarterly, with contributions due within 28 days after the end 

of each quarter. Under Payday Super, employers must instead pay SG contributions on each payday, aligned with

 salary and wages (e.g. weekly, fortnightly or monthly payroll cycles). 

Importantly, contributions must be received by the employee’s super fund within 7 business days of payday, not 

simply processed by the employer. This requirement ensures funds move quickly through payroll systems and into 

employees’ retirement accounts. 

2. Introduction of “Qualifying Earnings”

The reform introduces a new calculation base known as qualifying earnings (QE).
QE broadens the earnings base beyond ordinary time earnings (OTE) to include:

• Standard earnings (OTE)
• Salary sacrifice contributions
• Other amounts forming part of salary or wages for SG purposes 

The SG rate remains at 12%, but it is applied to this expanded earnings base. 

3. Enhanced Reporting and Compliance

Employers will be required to report both qualifying earnings and SG liabilities through Single Touch Payroll (STP),

enabling near real-time monitoring by the Australian Taxation Office (ATO). 

Failure to meet timing requirements will trigger the Superannuation Guarantee Charge (SGC), with updated 

penalty rules ensuring employees are compensated for late or missing contributions

4. Policy Objectives and Impact

A key driver of Payday Super is the persistent issue of unpaid superannuation, estimated at over $6 billion annually.
By aligning super payments with wages, the reform: 

• Reduces the risk of delayed or unpaid contributions
• Improves visibility and employee oversight
• Allows earlier investment, increasing compounding returns 

Treasury estimates that millions of workers will benefit, with more frequent contributions improving retirement balances 

over time. 

5. Practical Implications for Employers

Employers must adapt payroll systems, cash flow management, and internal processes to accommodate:

• More frequent payment cycles
• Faster processing timelines
• Increased compliance monitoring 

Preparation is critical, as the reform converts super from a periodic obligation into a real-time cash outflow aligned 

with each pay run.

Reference/citation

• Australian Taxation Office – Payday Super overview [ato.gov.au]
• Treasury – Payday Super factsheet [treasury.gov.au]
• Fair Work Ombudsman – Payday Super changes [fairwork.gov.au]
• Treasury Ministers Media Release (Nov 2025) [ministers....ury.gov.au]
• Parliament of Australia – Payday Super legislation [aph.gov.au]
• Industry and advisory articles (2025–2026) [financedir...ory.net.au], [turkslegal.com.au]

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