10/06/2026
Be ready: Payday Super starts from 1 July 2026
Payday Super is a massive change to Australia’s superannuation system that requires employers to pay their employees' super guarantee (SG) at the same time as their salary and wages, rather than quarterly.
Here are the key details you need to know about how it works:
• When it starts: The rules come into effect on 1 July 2026.
• The Deadline: Super contributions must be received by the employee's super fund within 7 business days of their payday (exceptions apply for first contributions for new employees).
• Calculating Super: Super will be calculated as 12% of an employee's "qualifying earnings" (a term that combines ordinary time earnings with salary sacrificed amounts and commissions paid) each pay cycle.
• Reporting: Both qualifying earnings and the super liability must be reported through Single Touch Payroll (STP).
• Penalties: Late or missed payments will incur a Super Guarantee Charge (SGC), which includes daily compounding interest and administrative penalties.
If you are using an accounting software package that already complies with Single Touch Payroll, then you should be able to set up super payments directly to ensure you are ready for this change on 1 July.
If you need assistance, please reach out to Martin & White Accountants before 1 July.