What’s happening?
From 1 July 2026, the way employers pay super is changing.
Instead of mainly working to quarterly super deadlines, employers will need to process super with each pay run so it is received by the employee’s fund within the required timeframe.
This change is known as Payday Super. Under the new rules, super will still be calculated at the current rate of 12%, but it will need to be received by the employee’s super fund within 7 business days of payday, unless an extended timeframe applies.
Below is a simple breakdown of what happens now compared with what changes from 1 July 2026.
When super is paid
Now (current system)
Super must be received by the fund by quarterly due dates (28 Oct, 28 Jan, 28 Apr, 28 Jul). This allows some flexibility within each quarter.
From 1 July 2026
Super will need to be processed with each pay run and expected to be received by the fund within 7 business days. It becomes part of every pay run rather than a quarterly task.
How super is worked out
Now (current system)
Super is typically 12% of ordinary time earnings (OTE).
From 1 July 2026
Super remains 12%, but will be calculated on qualifying earnings (QE) instead. QE includes OTE along with other types of earnings, bringing them into a single calculation base.
If super is paid late
Now (current system)
Late super may result in the Super Guarantee Charge (SGC), including interest and admin fees, with penalties potentially up to 200%. SGC is also not tax deductible under the current system.
From 1 July 2026
SGC still applies, but is calculated differently. It is based on QE, includes daily compounding interest, and may include additional administrative uplift. Penalties may apply, commonly at 25% or 50% depending on circumstances and prior history, with different treatment possible in certain situations. Under the new system, SGC will be tax deductible.
How late payments are treated
Now (current system)
Late payments can sometimes be offset within the existing SGC framework.
From 1 July 2026
The late payment offset will no longer apply. Payments are automatically applied to the oldest outstanding super amounts.
Payroll reporting
Now (current system)
Reporting is based on OTE or super liability, depending on payroll setup.
From 1 July 2026
Employers must report both qualifying earnings and super amounts through STP-enabled payroll systems.
Clearing house and payment systems
Now (current system)
The ATO Small Business Super Clearing House is closed to new users but available to existing users until 30 June 2026.
From 1 July 2026
The clearing house will no longer be available. Employers will need to use a commercial clearing house or payroll solution that supports Payday Super.
What employers should note for new employees
Now (current system)
New employees fall under the same quarterly deadlines, but collecting accurate super details early is still important.
From 1 July 2026
There is a practical exception for first-time contributions (e.g. new employees or fund changes). These can have up to 20 business days from payday instead of 7, giving extra time for setup.
Getting ready for Payday Super
Payday Super might sound like a big change, but at its core, it’s really just about timing. Instead of thinking about super once a quarter, it simply becomes part of your usual payroll flow.
Getting ahead of it now, even in small steps, can make a big difference later on, especially in fast-moving industries like music and entertainment where payments can vary from project to project.
If you’re looking for support beyond just this change, we work closely with creatives and businesses in the music and entertainment space, offering Business Management services that include superannuation guarantee as part of the overall package.
Feel free to reach out if you’d like a hand getting everything set up properly.
