We’re debunking more common myths about Payday Super.
Myth: 'Payday Super increases the amount of super I need to pay'
Fact: For most employers Payday Super doesn’t change how much super you need to pay. It does change when super is paid.
The total amount of super you pay will stay the same. From 1 July, super will be calculated at 12% of an employee’s qualifying earnings.
You should take steps to:
- review payroll settings to ensure super is calculated and paid each payday
- confirm your systems use qualifying earnings as the base for your super contributions.
Myth: 'There are no changed processing times for super funds'
Fact: Super funds must allocate or return contributions within 3 business days.
However, clearing house processing times can vary and they aren’t managed by us.
Super is only considered paid when it reaches the employee’s fund, not when you send it to a clearing house. If contributions don’t arrive at the fund within the required timeframe:
- they are considered late
- the super guarantee charge (SGC) can apply.
To stay on track, you should:
- check processing timeframes with your clearing house and super funds
- allow enough time for contributions to be processed and received on time
- align payroll processes so you pay super as close to payday as possible, rather than waiting until later in the 7-day window.
Check our employers checklist to see if you’re on track for the start date.
Myth: 'After 1 July I can continue to use the late payment offset (LPO)'
Fact: The LPO will not be available under Payday Super.
It will also not be available for late super payments for the June quarter that's due 28 July 2026.
If you want to use late payments to offset the SGC for earlier quarters, they must be received by the fund on or before 30 June 2026.
With the introduction of Payday Super, contributions received by an employee’s super fund on or after 29 July 2026 will be automatically applied to the earliest available qualifying earnings day.
Myth: 'Qualifying earnings are the same as ordinary time earnings (OTE)'
Fact: Qualifying earnings are the new base for calculating super contributions.
Super guarantee is currently calculated as 12% of an employee's OTE. From 1 July, qualifying earnings will bring together OTE and other payments, such as commissions, amounts salary sacrificed to super and payments to independent contractors. Super will then be calculated as 12% of an employee's qualifying earnings.
You must report both super liability and qualifying earnings through Single Touch Payroll.
We encourage you to also read our April media release where we debunked other common Payday Super myths that affect employers.
Now is the time to act to be ready for Payday Super! You can find the latest information and resources at ato.gov.au/PaydaySuper.
Keep up to date
We have tailored communication channels for medium, large and multinational businesses, to keep you up to date with updates and changes you need to know.
Read more articles in our online Business bulletins newsroom.
Subscribe to our free:
- fortnightly Business bulletins email newsletterExternal Link
- email notifications about new and updated information on our website - you can choose to receive updates relevant to your situation. Choose the 'Business and organisations' category to ensure your subscription includes notifications for more Business bulletins newsroom articles like this one.