Payday Super is coming: What Australian businesses need to know before 1 July

If you run payroll for an Australian business, 1 July 2026 marks a significant shift in how superannuation works. The Australian government has passed the Payday Super legislation, and from that date, the rules around super payments change fundamentally – from a quarterly obligation to one that applies on every single payday.

For many payroll and finance teams, this will require changes to processes, systems, and schedules that have been in place for years. The earlier you understand what’s coming, the better positioned you'll be to handle it without disruption.

Here’s what you need to know.

What’s changing with Payday Super?

Today, employers are required to pay superannuation into employee funds at least once every quarter. Under Payday Super, that changes. From 1 July, 2026, super must be calculated and paid on the same day wages are paid – every pay cycle, without exception.

The ATO requires that contributions are received by the employee’s super fund within seven business days of payday. Since most clearing houses take between one and three business days to process transactions, that window is tighter than it might appear. Employers will need to submit early enough in the cycle to ensure funds arrive on time.

There are several other changes happening alongside the shift in frequency:

• Qualifying Earnings replaces OTE: The earnings base used to calculate the super guarantee is changing. Ordinary Time Earnings (OTE) is being replaced by Qualifying Earnings (QE), a broader measure. The minimum 12% super guarantee will now be calculated against QE, and employers are responsible for reviewing their pay component codes to ensure the mapping is correct.
• STP reporting expands: Every Single Touch Payroll submission will now need to include year-to-date Qualifying Earnings and year-to-date Super Liability for each employee. These are new mandatory fields, and getting them right from day one matters.
• The ATO’s Small Business Super Clearing House is closing: The free clearing house service offered by the ATO is being decommissioned on 1 July 2026. If your business currently uses it, you need to transition to an alternative clearing house before that date — this is one of the most time-sensitive actions on the list.
• Member Verification Requests arrive in 2027: From March 2027, businesses will be required to verify that an employee’s super fund details are valid before sending contributions. This is a separate compliance phase, but worth planning for now.

What businesses need to do to prepare for Payday Super

Getting ready for Payday Super doesn't need to be overwhelming, but it does require deliberate action across a few areas:

• Choose your clearing house: If you use the ATO’s Small Business Super Clearing House, transitioning is not optional — it’s closing. Research alternatives now, factor in setup time, and ensure your new clearing house is ready to go before 1 July.
• Review your pay component codes: With the move to Qualifying Earnings, your team needs to confirm that every pay component is correctly categorised. This is your responsibility as an employer and directly affects how the super guarantee is calculated.
• Revisit your internal payment schedule: Paying super on every payday with a seven-business-day window means your team needs to move quickly. Build clearing house processing time into your cycle so contributions aren't arriving late.
• Check your STP setup: Ensure your payroll system is ready to report the new mandatory fields – year-to-date QE and Super Liability – from the first pay run after 1 July.

One reassuring note: the ATO has confirmed it will take a supportive approach in the first year for employers demonstrating genuine effort to comply. That doesn't remove the urgency, but it does mean that businesses actively working toward readiness are already on the right track.

Getting started

The 1 July deadline is firm, and the steps required to meet it take time. The businesses that will navigate this most smoothly are those that start now — reviewing their clearing house, checking their pay component codes, and confirming their payroll system will be ready.

ZonePayroll is set up to assist organizations with Payday Super requirements. To learn more, please request to speak to a specialist today.

For more information on Payday Super, please visit the ATO.

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Regulatory Overview – For Informational Purposes Only

Disclaimer: This guide provides a general overview of Australia's Payday Super regulations for informational purposes. It does not constitute legal, financial, or tax advice. While we strive to keep this information current as of 8 May, regulations and timelines are subject to change by the Australian authorities.

Zone assumes no liability for the accuracy or completeness of this information or for any actions taken based upon it. For definitive legal requirements and the most up-to-date mandates, please consult the official Australian Taxation Office (ATO) website and your professional payroll advisors.

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