How Payday Super affects you
For most employers, Payday Super does not change the amount of super guarantee you pay, the employees you pay it for, or the way you pay it.
The main change is the frequency of your super payments. Under Payday Super you pay super for each payday (instead of at least quarterly under the old law).
If you don't pay super guarantee in full, on time and to the right fund, you are liable to pay the super guarantee charge.
For more information about the changes, see About Payday Super.
Who you pay super for
As an employer, you pay super guarantee contributions for your eligible employees (including eligible contractors). This has not changed under Payday Super.
Super guarantee is in addition to payments you make to your employees for their work (such as wages).
Steps to work out and pay super
- Calculate the super guarantee amount to pay
This is 12% of the qualifying earnings you pay to each employee for the pay period. Qualifying earnings include payments to an employee for their ordinary hours of work.
You may be required to pay more super under an industrial award, enterprise agreement or individual contract.
You can stop paying super guarantee for high-income employees once they reach the maximum contributions base.
- Pay super guarantee into a complying super fund
In most cases your employees can choose the super fund. See Which super fund to pay into.
The fund needs to be able to allocate the super guarantee to the employee's member account at the time it receives the contribution.
- Pay super guarantee contributions for each payday ('QE day')
Your super contribution must be received by the employee's super fund no more than 7 business days after the QE day (unless longer applies). See Payment deadlines for Payday SuperExternal Link.
QE day is the day you pay qualifying earnings to an employee (that is, payday).
If you use a commercial clearing house, allow enough time for them to process your payment.
- Pay and report through SuperStream
Most payroll software is able to do this.
Paying through SuperStream means the super payments and associated information move through the system electronically.
SuperStream and the payment process have been improved to enable faster, more reliable payments.
- Keep records
Keep records of your super guarantee calculations and payments.
Example: paying super guarantee
Mohamed employs Caroline.
Mohamed pays $3,000 in wages to Caroline on 10 July 2026. This is the QE day (that is, payday), as this is a payment of qualifying earnings.
As set out in the steps above:
- Mohamed calculates the super guarantee that Caroline is entitled to. This is 12% × $3,000 = $360.
- Mohamed pays the $360 super guarantee contribution into Caroline's chosen complying super fund.
- Mohamed ensures that the super guarantee contribution is received by Caroline's super fund no more than 7 business days after the QE day, that is, by 21 July 2026. He decides to make the super guarantee contribution on the same day that he pays Caroline. It is received by the super fund on 15 July 2026.
- Mohamed uses his payroll software to pay and report Caroline's super guarantee through SuperStream.
- Mohamed keeps a record of his super guarantee calculations and payments for Caroline.
Example: resubmitting super payment that was rejected
Fuka employs Luis.
Fuka pays $800 in wages to Luis on 14 August 2026. This is the QE day (or payday). This amount is qualifying earnings.
As set out in the steps above:
- Fuka calculates the super guarantee that Luis is entitled to. This is 12% × $800 = $96.
- Fuka pays the $96 super guarantee contribution into Luis' chosen complying super fund.
- Fuka ensures that the super guarantee contribution is received by Luis' super fund no more than 7 business days after the QE day, that is, by 25 August 2026. She decides to make the super guarantee contribution on the same day that she pays Luis.
- However Fuka did not provide all the relevant information to the super fund, so the amount could not be allocated to Luis' member account. The super fund rejects the payment on 18 August 2026.
- Fuka reviews the error message and gathers the right information. She resubmits the payment to the super fund on 19 August 2026. It is received by the super fund on 21 August 2026, which is still within the 7-business day timeframe.
- Fuka uses her payroll software to pay and report Luis' super guarantee through SuperStream.
- Fuka keeps a record of her super guarantee calculations and payments for Luis.
How your contributions are allocated
By law, your eligible contributions are automatically allocated to the earliest QE day for which the minimum super guarantee has not been paid in full (that is, the earliest QE day for which there is an individual base super guarantee shortfall). Contributions, including any excess, are applied in the order they are received by the fund.
The QE day is the day you pay qualifying earnings (that is, payday).
You are no longer able to elect to apply a late contribution to offset an unpaid super guarantee amount.
A contribution for a QE day is considered late if it is received by the fund more than 7 business days after the day you pay your employee (unless longer applies) but before an assessment for the super guarantee charge is made. A late contribution partly reduces the amount of super guarantee charge.
Example: late contribution allocated to earliest QE day with unpaid super guarantee
Katie employs one employee, Alex. She pays Alex fortnightly.
On 9 July 2026, Katie pays Alex $2,560 in wages (QE day 1). Katie pays $307.20 to Alex's super fund on the same day.
On the next 2 pay cycles on 23 July 2026 (QE day 2) and 6 August 2026 (QE day 3), Katie pays Alex his wages as normal, but is unable to pay his super.
On 20 August 2026 (QE day 4), Katie pays Alex his usual wages and is able to pay his super as well. The super contribution is received by Alex's super fund on 25 August 2026, within the 7-business day timeframe.
However, when this payment is received there is still an individual base super guarantee shortfall (an amount of unpaid minimum super guarantee) for QE day 2. The super contribution made on 20 August 2026 will be allocated to QE day 2 as a late payment. In turn there will still be an individual base super guarantee shortfall for QE day 3 and QE day 4.
Katie can't elect to apply the super contribution in a different way. Even though she intended the contribution to be for QE day 4 and it was received on time by the super fund for QE day 4, it must still be allocated to the earliest QE day for which the minimum super guarantee amount has not been paid in full (QE day 2).
End of examplePaying more than 12% of qualifying earnings
Some employers pay super above the minimum 12% of qualifying earnings. For example, their employees may be entitled to a higher rate of super under an employment or industrial agreement.
If you pay more super than the minimum 12% for a QE day (payday), we allocate the excess to the first available QE day in the order contributions are received by the fund. Where excess contributions are carried forward, they can be applied to a QE day for up to 12 months.
While this means your super guarantee contributions have been met, you will still have to pay the additional super under any employment or industrial agreements in full.
Example: employer pays super at 15% of qualifying earnings
Syd pays Connie $1,000 in wages every second Thursday. These Thursdays are QE days (that is, paydays), as these are payments of qualifying earnings. Under their enterprise agreement, Connie is entitled to 15% super.
Syd makes a contribution of $150 (15% of $1,000) to Connie's super fund for QE day 1. This is $30 more than the minimum super guarantee amount (12% of $1,000 = $120).
The extra $30 will be allocated to the minimum super guarantee payment for the first available QE day. In this case, that is QE day 2.
On QE day 2, Syd again pays Connie $1,000 of qualifying earnings and contributes $150 (15% of $1,000) to her super fund.
We will apply the excess contribution of $30 from QE day 1 to offset the $120 (12% of $1,000) super guarantee payment that Syd owes for QE day 2.
Therefore, for super guarantee purposes Syd only needed to pay $90 ($120 − $30) for QE day 2. However, under the enterprise agreement he still needed to pay the full $150.
End of exampleClaim a tax deduction
You can claim a tax deduction for:
- on-time eligible contributions
- late eligible contributions
- payment of the super guarantee charge for QE days from 1 July 2026 onwards.
You are not eligible to claim a tax deduction for:
- a late payment penalty
- any general interest that accrues if you don't pay the super guarantee charge
- any super guarantee charge assessments for quarterly super guarantee periods.
SBSCH is closing
The Small Business Superannuation Clearing House (SBSCH) will be closed from 1 July 2026. Existing users of the SBSCH will have access to the service until 30 June 2026. Employers are no longer able to register as new users of the SBSCH.
You can exit from using the SBSCH ahead of time.
You should also download your SBSCH records no later than 30 June 2026.
You may already have other options readily available. Check your existing software and payroll package, as it may already include super functions you can use to pay super guarantee. If it does not include a super function, look for options from super funds or digital service providers offering payroll services, software or commercial clearing houses.
For more information on alternative options and key dates, visit the Small Business Newsroom or speak to your registered tax professional.