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Payday Super starts on 1 July 2026 The information on this page applies to super guarantee payments from 1 July 2026. Some regulations and law for Payday Super are still being considered by Parliament. For progress updates see Payday superannuation legislation. |
Paying super contributions
As an employer, you must pay super guarantee (SG) contributions for your employees. SG is in addition to payments you make to your employees for their work (such as wages). Paying SG correctly means you can avoid paying the super guarantee charge (SGC).
Follow these steps to pay SG for your eligible employees:
- Calculate the SG amount to pay. This is 12% of the qualifying earnings you pay to your employee for the pay period. The day you pay the qualifying earnings to your employee is known as the 'QE day'. You may:
- pay more superannuation under an industrial award, enterprise agreement or individual contract
- stop paying SG to high-income employees once they reach the maximum contributions base.
- Pay SG into a complying super fund. In most cases your employees can choose the super fund. The fund needs to be able to allocate the SG to the employee's member account at the time it receives the amount.
- Ensure your payment of SG is received by the super fund no more than 7 business days after the QE day (unless longer applies). It is best practice to make the SG contribution at the same time as you pay qualifying earnings to your employees. See Payment deadlines for Payday Super.
- Pay and report through SuperStream (most payroll software is able to do this). This means the super payments and associated information move through the system electronically.
- Keep records of your SG calculations and payments.
A contribution is on time if it is received by your employee's super fund within 7 business days after paying your employee. If you use a commercial clearing house, allow enough time for them to process your payment. There are situations where you may have a longer period to make an on-time contribution (for example, when a new employee starts).
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 SGC is made.
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). This amount is qualifying earnings.
As set out in the steps above:
- Mohamed calculates the SG that Caroline is entitled to. This is 12% × $3,000 = $360.
- Mohamed pays the $360 SG contribution into Caroline's chosen complying super fund.
- Mohamed ensures that the SG 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 SG 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 Sue's SG through SuperStream.
- Mohamed keeps a record of his SG calculations and payments for Sue.
Check for complying super funds
You can check the compliance status of a super fund using Super Fund LookupExternal Link.
If the fund is not listed, you can get written confirmation from the fund's trustee. This confirmation must state that the fund:
- is a complying super fund
- intends to accept your super contributions
- will continue to meet the relevant legal requirements.
If you pay contributions to a non-complying super fund, the contributions:
- won't count towards meeting your SG obligations
- won't be tax deductible
- may incur a fringe benefits tax liability.
Record keeping
You need to keep records that show:
- the amount of super you paid for each employee
- how you calculated the minimum individual SG amounts for each employee
- that you offered your employees a choice of super fund.
How your contributions are allocated
You are no longer able to elect to apply a late contribution to offset an unpaid SG amount. By law, your eligible contributions are automatically allocated to the earliest QE day for which the minimum SG has not been paid in full (that is, the earliest QE day for which there is an individual base SG shortfall).
If you pay more contributions than you need to for a QE day, the excess is carried forward to the next QE day (up to 12 months). Contributions, including any excess, are applied in the order they are received by the fund.
Example: late contribution allocated to earliest QE day with unpaid SG
Katie employs one employee, Alex. She pays Alex fortnightly.
On 9 July 2026, Katie pays Alex $2,560 in wages (QE day 1). She 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 SG shortfall (an amount of unpaid minimum SG) 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 SG 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 SG amount has not been paid in full (QE day 2).
End of exampleClaim a tax deduction
You can claim a tax deduction for:
- on-time eligible contributions
- late eligible contributions
- payment of the SGC.
You are not eligible to claim a tax deduction for a late payment penalty or any general interest that accrues if you don't pay the SGC.
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 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 SG. 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.