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Payday superannuation

From 1 July 2026, employers will be required to pay their employees' super at the same time as their salary and wages.

Last updated 27 March 2025

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On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages. On 18 September 2024External Link, the government announced further details.

This measure is not yet law.

These changes include:

  • Contributions of super. From the start of the measure, employers will be required to pay their employees’ SG at the same time as their salary and wages. They will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within 7 days of payday.
  • Payday is the date that an employer makes a qualifying earnings (QE) payment to an employee.
  • Contributions will need to arrive in employees' super funds within 7 calendar days of payments of QE. QE is a new concept which includes
    • ordinary time earnings (OTE)
    • salary sacrifice super contributions
    • other amounts which are currently included in an employee's salary or wages for super guarantee.
  • Updated super guarantee charge. Where employers fail to pay contributions in full and on time, they are liable for SGC. The SGC will be updated and consist of
    • Individual final SG shortfall: any contributions that remain unpaid when the SGC is assessed. The shortfall calculation will be based on QE, creating consistency with the calculation of SG contributions. Late contributions paid by an employer before they are assessed for the SGC will reduce the individual final SG shortfall.
    • Notional earnings: an interest component to put employees in the same position that they would have been had the contributions been received in full and on time.
    • Administrative uplift: an additional charge levied to reflect the cost of enforcement and encourage employers to make voluntary disclosures to the ATO.
    • Choice loading: A choice loading will apply where an employer does not comply with the choice of fund rules.
    • Once SGC is assessed, additional interest and penalties may apply if the SGC liability is not paid in full.
    • General interest charge (GIC): GIC will accrue on the entire SGC amount rather than just the total of the individual SG shortfall amounts.
    • Late payment penalty: If SGC remains unpaid 28 days after it is assessed, the ATO will be required to issue an employer a notice to pay. If the employer does not pay the SGC included in a notice to pay within a further 28 days, they will be liable to a late payment penalty.
    • The SGC will be tax-deductible, ensuring the income tax consequences for paying employees’ super are consistent.
  • SBSCH decommission. The Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026. The improvement in payroll software solutions over recent years provides employers with cost-effective and higher quality options for paying superannuation contributions more timely and accurately. We will engage with small businesses ahead of time to guide them in transitioning to a commercial alternative that is fit-for-purpose for Payday Super.
  • Fund allocation and SuperStream updates. The deadline for super funds to allocate or return contributions that cannot be allocated will be reduced to 3 business days, down from 20. The SuperStream data and payment standards will be revised to allow faster payments via the New Payments Platform and improve error messaging to ensure employers and intermediaries can quickly address errors.
  • STP updates. Employers will be required to report in Single Touch Payroll (STP) both the OTE and the super liability for an employee, ensuring the SG can be correctly identified.

More information on the design of Payday Super is available in the Treasury fact sheetExternal Link. Treasury and the ATO are engaging with industry and stakeholders on these changes.

Consultation and Ministerial media releases

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