Understanding Payday Super

What employers need to know

Navigating the proposed Payday Super changes

Payday Super, whilst not legislated yet, is set to be one of the most significant changes to the way superannuation is managed in Australia in recent years. At AustralianSuper, we’re here to help you understand what the proposed Payday Super legislation means for your business, how it may affect your employer obligations, and provide tips on how to prepare for this change.

Current rule

Employers must make superannuation contributions at least quarterly, by the 28th day after the end of each quarter.

Under Payday Super

Employers will be required to pay super contributions at the same time they pay salaries and wages. For most, this will mean payments are made weekly, fortnightly, or monthly, depending on payroll frequency.
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What is Payday Super?

The Australian Government is introducing major reforms to the Superannuation Guarantee (SG) system to tackle unpaid super and improve retirement outcomes for workers. It’s a proposed policy that requires employers to pay their employees’ SG contributions at the same time as their normal payroll cycle - essentially, on or before payday.

Key expected changes for employers

The proposed start date for Payday Super is 1 July 2026.

Employee choice of super fund

Employers can request a new employee's stapled fund details during onboarding, allowing them to show the employee their stapled fund before offering other fund options.

New SG shortfall assessment

SG shortfalls will be assessed based on whether contributions are received by the employee’s super fund within 7 days of payday (called the “Qualifying Earnings Day” or QE day), instead of quarterly.

Updated SG charge calculations

The SG charge now includes:

  • Final SG shortfall amounts.
  • Notional earnings (interest on unpaid amounts).
  • Administrative uplift (penalty component).
  • Choice loadings (if fund choice rules are breached).

Voluntary disclosure option

Employers can voluntarily disclose SG shortfalls before the ATO issues an assessment, potentially reducing penalties.

Stronger penalties for late payments

If SG charges remain unpaid 28 days after assessment, penalties of 25%–50% of the outstanding amount will apply, depending on prior compliance history.

Annual maximum contributions base

The cap on SG contributions will be calculated annually, not quarterly, simplifying compliance for high-income earners.

Qualifying earnings (QE)

Qualifying earnings is a newly introduced term defined as the earnings used to calculate an employee's SG contributions. The rules for this are being simplified, but they will still use the current earnings base, called Ordinary Time Earnings (OTE). OTE includes:

  • The regular earnings as defined by the current SG rules.
  • Any portion of earnings that an employee has sacrificed for extra superannuation contributions through salary sacrifice.
  • Payments that are specifically included as part of salary or wages.

The ATO's Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Businesses using it for super payments will need to find an alternative solution. AustralianSuper currently offers eligible employers access to a clearing house solution, where you can make super payments to multiple funds for different employees.

How to prepare for Payday Super

Check your clearing house and payroll systems

Ensure your clearing house and payroll software supports real-time SG payments aligned with employee paydays.

Review fund choice compliance

Make sure employees are given the right fund choice options.

Monitor contributions closely

Track payments to avoid shortfalls and take advantage of voluntary disclosure to reduce penalties.
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Frequently asked questions

Learn more about Payday Super

We’ll continue to keep this page updated as more information is available.

Treasury factsheet

Payday Super factsheet - pdf

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