Payday super checklist for employers: Steps to stay compliant

From 1 July 2026, employers must pay their employees’ superannuation guarantee (SG) contributions at the same time as salary or wages. This new system is known as payday super.

Currently, most employers pay super on a quarterly basis. From July 2026, super will instead need to be paid each pay cycle.

The ATO has released a checklist to help employers prepare for this change. Below is a straightforward guide outlining what small businesses should be doing now to get ready.

If you’re an employee, this article explains what your employer will need to do on your behalf from 1 July 2026. The aim of these changes is to ensure super is paid more frequently and reaches your super fund sooner.

Now: Understand the new requirements

From 1 July 2026, the following requirements will apply:

• SG contributions must be paid on every payday.

• SG contributions must generally reach employees’ super funds within 7 business days after payday.

• Super will be calculated using a new concept called “qualifying earnings”.

Qualifying earnings include an employee’s ordinary time earnings (OTE) — that is, payments for ordinary hours of work — as well as certain types of:

• paid leave

• allowances

• bonuses

• lump sum payments.

Qualifying earnings also include:

• commissions

• salary sacrificed amounts to super

• payments made to workers captured under the expanded definition of employee, such as independent contractors who are paid mainly for their labour.

Employers will need to report OTE/qualifying earnings and superannuation liabilities via Single Touch Payroll (STP) software.

February to March 2026: Plan and prepare

Employers should start preparing now by taking the following steps:

• Decide how your business will move from quarterly super payments to payday payments.

• Speak to your accountant or payroll provider if you are unsure about how to transition to payday super.

• Review how paying super more frequently will affect your cash flow, and update your cash-flow forecasting and budgeting processes accordingly.

• Make sure all employee super fund details are correct, including member account numbers and unique superannuation identifiers, to prevent errors.

• Fix any warning messages received from employees’ super funds, as incorrect details may cause payments to be rejected after 1 July 2026, resulting in a late payment.

April to June 2026: Lock in your plans

In the months leading up to the start date:

• Confirm that your payroll software will be ready for payday super.

• If using a clearing house, check that it supports payday super and whether updates are required.

• If you currently use the ATO Small Business Superannuation Clearing House (SBSCH), you will need to transition to an alternative clearing house provider before 1 July 2026, as the SBSCH will cease operating from that date.

• Download and retain all SBSCH transaction history before 1 July 2026. Once the service permanently closes, records will no longer be accessible. These records may be required in the future to respond to ATO reviews, audits or employee enquiries.

• Put a process in place to quickly fix any SG contribution payment errors.

• Allow enough time for SG contributions to clear so the super fund receives the contribution within 7 business days after payday.

• Keep clear records of all super payments.

• Pay SG contributions for the January–March 2026 quarter by 28 April 2026.

1 July 2026: Payday super starts

From 1 July 2026, payday super takes effect. To meet the new requirements, employers must:

• Pay SG contributions in full, on time and to the correct super fund. Failure to do so may result in penalties, including the superannuation guarantee charge (SGC), which can exceed the original super amount owed.

• Ensure SG contributions are received by and allocated to employees’ super funds within 7 business days of each payday.

• Calculate SG contributions based on qualifying earnings.

• Report qualifying earnings and SG liabilities via STP-enabled software.

• Pay the final quarterly SG contribution for the April–June 2026 quarter by 28 July 2026.

• Note that the ATO Small Business Superannuation Clearing House cannot be used for payments made on or after 1 July 2026, and no late payment offset will apply for that final quarter.

Final reminder

Start preparing early by checking that payroll software is ready, reviewing cash flow and confirming employee super details are correct.

Payday super is a significant change, but with proper planning the transition can be smooth.

If you are uncertain about how the new rules will affect your cash flow or payroll processes, please contact us — we are here to help ensure everything is in place before the July 2026 start date.