The change from quarterly (or periodical) Superannuation reporting and payments to the new ‘Payday Super’ begins on 01 July 2026, implemented by the Australian Taxation Office (‘ATO’).
Here are some key points to remember about Payday Super:
- Instead of paying quarterly (or periodical) Superannuation (‘Super’) for your employees and contractors, Super is now required to be paid within seven days of payment of salary
- Even though the due date for Super is within seven days of payment of salary (unless longer applies, i.e. for a new employee), you will need to arrange to pay on the day you pay your workers, to avoid late payment. Plus, this will avoid double-handling if it is done at the time of salary payments
- If you use the Small Business Superannuation Clearing House (SBSCH), note that it is closing permanently on 30 June 2026
To transition to Payday Super:
- Pay the June 2026 quarter (period) by the due date as you normally would
- (NOTE: There will be no late payment offset for the final June quarterly payment)
- Cashflow will be tighter in July because you will need to pay the June quarter (period) Super payment, PLUS Super for any Paydays in July. Cashflow will need to be managed carefully in July 2026
Qualifying Earnings (QE)
Qualifying Earnings (QE) is a new term the ATO have introduced, which is Earnings that Super must be paid on. Year to date Super liability and QE will need to be reported each Payday, implemented within the 2026-27 financial year.
Concessional Contributions Cap
Changes (although not yet law) have been announced for the 2026-27 concessional contributions cap in order to avoid exceeding the cap due to Payday Super starting.
(Note: the cap is the maximum Super you can receive each year at a lower tax rate.)
For the 2026-27 year it is $32,500.
For further information please visit the ATO publication on Payday Super HERE.