Payday Super - Key changes to super guarantee

Payday Super laws will start from 1 July 2026 

From 1 July 2026, Australia’s superannuation system will undergo a major shift with the introduction of Payday Super. 

Under the new rules, employers will be required to pay Super Guarantee (SG) at the same time as salary and wages, rather than quarterly. This reform is administered by the Australian Taxation Office (ATO) and is designed to improve retirement outcomes for employees while increasing compliance expectations for employers. 

What are the changes Employers need to be aware of? 

Topic	Current rules	From 1 July 2026
When super is paid	Paid quarterly (or more frequently)	Paid on payday, together with salary and wages
Payment deadline	Must reach the super fund within 28 days after quarter end	Must reach the super fund within 7 business days of payday
Calculation base	12% of Ordinary Time Earnings (OTE)	12% of Qualifying Earnings (QE) (OTE plus additional payments)
Late payment penalties (SGC)	Interest at 10% p.a., flat admin fee, not tax deductible	Daily compounding interest, variable admin uplift, tax deductible, assessed by the ATO

What steps can Employers take before 1 July 2026? 

Although the start date is 1 July 2026, employers can take steps now to prepare and reduce transition risk, including: 

• Considering paying super at the same time as salary and wages ahead of commencement 

• Reviewing payroll systems to ensure they can calculate Qualifying Earnings and process super payments each pay cycle 

• Confirming employee super fund details are complete and accurate 

• Reviewing internal payroll and super reporting processes 

• Planning for alternatives if currently using the Small Business Superannuation Clearing House (SBSCH), which will close from 30 June 2026 

• Reviewing cash flow impacts from paying super more frequently 

Employers should also check whether their payroll software already supports automated super payments. Many digital payroll solutions provide integrated super payment functionality without the need for an external clearing house. 

What Employees Should Know and Do 

The key objective of Payday Super is to reduce unpaid super and improve employee outcomes by aligning super payments with wage payments. 

Payday Super will: 

• Reduce the time between when income is earned and when super is invested 

• Increase transparency and make unpaid super easier to identify 

• Provide employees with earlier exposure to compound investment returns 

• Reduce the risk of delayed or missed super contributions 

Over time, more frequent super contributions are expected to materially improve retirement balances, particularly for younger employees. 

If you would like tailored advice on how Payday Super applies to your business, contact Lynden Group to speak with our tax and payroll specialists.