Payday Super: What Employers Need to Know Before 1 July 2026

Payday Super: What Employers Need to Know Before 1 July 2026

Based on the Australian Taxation Office’s official Payday Super guidance Australian Taxation Office

From 1 July 2026, employers must pay their employees’ super on payday, rather than quarterly. This is a major shift in how superannuation is calculated, paid, and reported.

So, What Is Changing?

Super must be paid on payday

• Employers must pay super at the same time as salary and wages.
• Payments must be received by the employee’s super fund within 7 business days of payday (with a few limited exceptions for new employees).

New calculation method: Qualifying Earnings (QE)

• Super will be calculated as 12% of Qualifying Earnings (QE).
• This is a new term, as QE combines what is currently known as ordinary time earnings (OTE) plus other super‑relevant payments.

New reporting requirements

• Employers will report both QE and super liability through Single Touch Payroll (STP).

More frequent payment = more frequent compliance

• Quarterly deadlines (28 Oct, 28 Jan, 28 Apr, 28 Jul) will no longer apply.
• Employers must ensure systems and processes can handle more frequent super payments.

Why is the ATO making this change?

• To help employees grow their super sooner.
• To reduce unpaid or late super issues.
• To improve transparency and accuracy across payroll systems.

What Do Employers Need to Do Now?

The ATO recommends employers begin preparing early:

• Review payroll systems to ensure they can calculate QE and pay super on payday.
• Check employee super fund details to avoid rejected payments and unnecessary delays.
• Plan for cash‑flow changes, as super will no longer accumulate quarterly.
• Stay informed by monitoring for any other ATO updates.

How Rowe Partners Can Support You?

If Rowe Partners already handles your payroll- Great news! We will implement all Payday Super changes for you. No action is required on your part.

If we don’t currently manage your payroll- we can take this off your plate!
Contact us to arrange payroll support and ensure you’re fully compliant starting from now.

If you prefer to keep managing payroll yourself- We can still help you prepare.
Book a phone consultation with an accountant who can walk you through the changes step‑by‑step. Submit an enquiry via our “Contact Us” page, or Call us on 1800 04 7693

Need Help Navigating Payday Super?

These changes are significant, but you don’t need to navigate them alone.

Rowe Partners Accountants is committed to supporting businesses through the transition so you can stay compliant and confident.

Call us on 1800 04 7693 for any questions or queries, or fill the below form out with your information.