22 May 2026
With Payday Super starting on 1 July 2026, employers who currently pay Super Guarantee (SG) contributions quarterly will need to manage both quarterly and Payday Super obligations in July. Understanding how the ATO applies SG contributions during this transition can help you avoid extra steps and potential penalties.
Here’s what to know and what to do to stay on track.
First up: Plan your cash flow for July
During the transition to Payday Super, July may be a busier month for super payments. If you can, the ATO recommends setting aside extra funds early to help meet these overlapping obligations. Paying your June quarter in advance of 1 July, and then moving to the Payday Super payment rhythm in July could help avoid complications later.
Prioritise paying your final quarterly super payment
If you currently make quarterly SG contributions, your final quarterly payment covers contributions for the period 1 April to 30 June 2026 and is due by 28 July 2026.
Super for pay runs in July may be due before your final quarterly super payment is due on 28 July. SG contributions received on or before 28 July will reduce any super owing for the June quarter first. If there is any remainder, contributions will then be used under Payday Super obligations. If you pay on time for quarterly and Payday Super the ATO has indicated that you’re not at risk of incurring penalties.
If you pay wages weekly, fortnightly or monthly, consider how you time your final quarterly payment and your first Payday Super obligation. This helps ensure you meet both your June quarter and Payday Super obligations during the transition.
If you don’t meet your June quarter obligation by 28 July, the ATO requires you to self-report and lodge a Super Guarantee Charge (SGC) statement.
How payments are applied during the Payday Super transition
During July 2026, the ATO have advised they will apply super contributions in the following way:
- Between 1 July and 28 July 2026
ATO will apply SG contributions received in July towards any June quarter shortfall first. If there’s money left over, it then counts towards your new Payday Super obligations. - From 29 July 2026 onwards
Payments are treated only as Payday Super obligations.
Understand the 7‑business‑day payment timeframe
From 1 July 2026, SG contributions must generally be received by your employees’ super funds within 7 business days of payday. For new employees, or employees who have changed funds, you’ll have a longer timeframe of 20 business days to make their first payment.
It’s important to know that the 7‑business‑day clock keeps ticking even if a payment is rejected. If a contribution is bounced back, due to incorrect account details or another error, you still need to fix the issue and make sure the payment reaches the fund within the original 7‑business day timeframe.
To help stay on track, the following steps can help reduce errors and give you confidence that your super payments will reach the fund on time. The ATO recommends:
- Paying super (with correct details) at the same time as wages
- Keeping clear and accurate records
- Talking to your payroll or clearing house provider about processing timeframes, how payment statuses are applied, and how different payment methods may affect timing.
Case study: Meeting super obligations during the Payday Super transition
Hannah is a business owner and has six employees. She pays wages fortnightly and has been paying SG contributions quarterly.
In the month of July 2026, Hannah works out she’ll need to pay SG contributions for 3 payment periods:
- The April to June 2026 quarter (due by 28 July 2026)
- Wages paid on Monday 6 July (where super must be received by employees’ super funds by 15 July)
- Wages paid on Monday 20 July (where super must be received by employees’ super funds by 29 July).
Hannah planned ahead by setting aside extra funds so she can meet all her super obligations on time. She understands that any SG contributions received on or before 28 July are applied to the April to June 2026 quarter first. So Hannah pays both her final June quarter and first July pay run payment on 6 July to ensure they reach employees’ funds by 15 July. She continues paying super for each subsequent pay run in line with the new Payday Super rules.
By paying the correct amounts (and with correct details) on time, Hannah meets both her quarterly and Payday Super obligations without needing to take any further action.
Other employers may choose different payment timing, but should still plan carefully to ensure both quarterly and Payday Super obligations are met during the transition.
What if you miss your June quarter payment?
If you don’t pay your June quarter super in full by 28 July 2026:
- Don’t pay the super fund
- Self-report and lodge a Super Guarantee Charge (SGC) statement with the ATO by 28 August 2026
- Pay the outstanding amount directly to the ATO.
This is important, because any payments made to a fund after 28 July will be treated as Payday Super, not as late quarterly super.