With less than 1 month left before Payday Super starts, we’ve pulled together some of the most common myths.
Myth: 'Payday Super changes how super is paid for contractors'
Fact: Payday Super doesn’t change who is eligible for super, it changes when super is paid.
If a contractor is deemed an employee for super purposes, super must be paid so that it reaches their super fund within 7 business days after their invoice is paid.
Employers need to make super contributions for independent contractors if they pay them:
- for their personal labour and skills (payment isn't dependent on achieving a specified result)
- to perform the contract work (work cannot be delegated to someone else).
Encourage your clients to review contractor arrangements now, particularly where there may already be super obligations.
Myth: 'Clearing houses will process super payments faster under Payday Super'
Fact: Employers need to check the processing times for their clearing house.
Employer clients need to allow enough time for payments to reach the fund and be processed. The safest way to meet the 7-business day requirement is to pay the contribution on the same day as the payday, allowing maximum time for processing. The clearing house website or product disclosure documents may provide additional information when considering Payday Super requirements.
Small processing delays can now lead to non-compliance, so early payment is key. Encourage clients to pay super on the same day as payday to allow maximum time for processing.
Myth: 'Super payments for quarter 4 needs to be paid by 30 June 2026'
Fact: Super payments for the April to June quarter must be received by the employee’s super fund on or before 28 July 2026.
If employer clients miss this due date, they need to lodge a super guarantee charge (SGC) statement and pay the amount of SGC owed to us by 28 August 2026. It's important that they leave enough time for their super payments to reach the super fund. The late payment offset won’t be available for any late super payments for the June quarter due 28 July.
Help clients get ready
There’s still time for your clients to prepare. Your support can make the difference.
Encourage them to:
- review payroll systems and processes
- align super payments with pay cycles
- build in sufficient processing time.
Remember, we have videos, fact sheets and a webinar to assist your employer clients to get it right from 1 July.
Read more about common Payday Super myths in our April media release and articles in Super fund news and SMSF news.
For more information, see Payday Super resources.