Well, that's just super
Posted on April 07, 2026
Significant changes to the calculation and payment of superannuation will commence from 1 July 2026.
Known as ‘Payday Super’, employers will be required to pay employees their superannuation on payday, with the payment to be received by the superannuation fund within 7 business days. Currently, superannuation guarantee (SG) payments must be received by a super fund within 28 days of the end of the quarter.
The calculation of superannuation is changing too. Currently the SG amount is 12% of ordinary time earning (OTE). As from 1 July 2026, the SG amount will be 12% of qualifying earnings (QE). QE includes:
- OTE, being payments for ordinary hours of work, including certain types of paid leave, allowances, bonuses and lump sum payments.
- All commissions paid to an employee.
- Salary sacrifice amounts that would qualify as qualifying earnings had they not been sacrificed to superannuation.
QE also includes earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors who are paid mainly for their labour.
Other changes
Other changes coming into effect on 1 July 2026 include:
- The SG charge will apply when amounts are not received by a super fund within 7 days of payday (unless an extended timeframe applies, such as for new employees) and will include interest that compounds daily.
- The requirement that employers report both QE and the superannuation liability through single touch payroll.
- The small business superannuation clearing house no longer being available.
Take away messages
Employers should review their payroll systems and processes now to ensure compliance by 1 July 2026.
Need assistance?
Please contact our workplace relations team if you require any advice or assistance with understanding Payday Super.
