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Payday superannuation

The government announced changes to superannuation guarantee from 1 July 2026.

Last updated 9 October 2025

On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ superannuation guarantee (SG) at the same time as their salary and wages.

On 9 October 2025, the Government introduced the Treasury Laws Amendment (Payday Superannuation) Bill 2025External Link and the Superannuation Guarantee Charge Amendment Bill 2025External Link.

This measure is not yet law.

Changes in the introduced bills and earlier government announcements include:

  • Timing of contributions to superannuation. From the start of the measure, employers will be required to pay their employees’ SG at the same time as their salary and wages. They will be liable for the superannuation guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within the required timeframe, generally 7 business days after payday.
  • Payday is the date that an employer makes a qualifying earnings (QE) payment to an employee.
  • Contributions will generally need to arrive in employees' superannuation funds within 7 business days of payments of QE. QE is a new concept which includes: 
    • ordinary time earnings (OTE)
    • salary sacrifice superannuation contributions
    • other amounts which are currently included in an employee's salary or wages for SG
  • An extended timeframe to pay contributions will apply in certain circumstances, for example when an employer is contributing to a superannuation fund for the first time for an employee (including new employees), when payments of QE are made to an employee outside their regular pay cycle and where exceptional circumstances have impacted the ability of multiple employers on large scale to pay superannuation contributions.
  • Updated superannuation guarantee charge. Where employers fail to pay contributions in full and on time, they are liable for SGC. The SGC will be updated and consist of
    • Individual final SG shortfall: any contributions that remain unpaid when the SGC is assessed. The shortfall calculation will be based on QE, creating consistency with the calculation of SG contributions. Late contributions paid by an employer before they are assessed for the SGC will reduce the individual final SG shortfall.
    • Notional earnings: an interest component to compensate employees for lost superannuation fund earnings when their contributions have not been received in full and on time.
    • Administrative uplift: an additional charge levied to reflect the cost of enforcement and encourage employers to make voluntary disclosures to the ATO.
    • Choice loading: A choice loading will apply where an employer does not comply with the choice of fund rules.
    • Once SGC is assessed, additional interest and penalties may apply if the SGC liability is not paid in full.
    • General interest charge (GIC): GIC will accrue on the entire SGC amount rather than just the total of the individual SG shortfall amounts.
    • Late payment penalty: If SGC remains unpaid 28 days after it is assessed, the ATO will be required to issue an employer a notice to pay. If the employer does not pay the SGC included in a notice to pay within a further 28-day period set out in the notice, they will be liable to a late payment penalty.
    • The SGC will be tax-deductible, ensuring the income tax consequences for paying employees’ superannuation are consistent.
  • The late payment offset will no longer apply to amounts contributed after 1 July 2026.
  • SBSCH decommission. The Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026 and closed to new users from 1 October 2025. The improvement in payroll software solutions over recent years provides employers with cost-effective and higher quality options for paying superannuation contributions more timely and accurately. We will engage with small businesses ahead of time to guide them in transitioning to a commercial alternative that is fit-for-purpose for Payday Superannuation.
  • Fund allocation and SuperStream updates. The deadline for superannuation funds to allocate or return contributions that cannot be allocated will be reduced to 3 business days, down from 20. The SuperStream data and payment standards will be revised to allow faster payments via the New Payments Platform and improve error messaging to ensure employers and intermediaries can quickly address errors.
  • STP updates. Employers will be required to report in Single Touch Payroll (STP) both the QE and the superannuation liability for an employee, ensuring the SG can be correctly identified.

The ATO has released a draft practical compliance guideline (PCG) 2025/D5 Payday Super – first year ATO compliance approach, in relation to its compliance approach for the 2026–27 year.

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