Major changes to superannuation take effect from 1 July 2026. Under Payday Super, employers must pay super guarantee to employees at the same time as their wages.
Key Changes from 1 July 2026
- Payment timing: Super must be paid on or before each payday (not quarterly)
- SG rate: 12% of qualifying earnings
- Reporting: Through Single Touch Payroll (STP) with each pay run
- Maximum contribution base: $272,500 per quarter (no super required above this per quarter)
What Are Qualifying Earnings?
Qualifying earnings include ordinary time earnings (OTE), which covers:
- Salary and wages
- Overaward payments
- Commissions and bonuses
- Allowances (but not expense allowances)
- Paid leave
- Some termination payments
Employer Obligations
- Calculate super on each pay run
- Pay super to the employee's nominated fund (or default fund)
- Report through STP-enabled payroll software
- Ensure super is paid on or before payday
- Keep records of all super payments
Super Guarantee Charge
If you do not pay super on time, you must pay the Super Guarantee Charge, which includes:
- SG shortfall amounts
- Interest (currently 10%)
- Administration fee ($20 per employee per quarter)
The charge is not tax-deductible, making late payment even more costly.
Source: ATO ??? About Payday Super