Payday Super

From 1 July 2026, superannuation in Australia will undergo a significant legislative change. Known as Payday Super, this reform requires employers to pay super contributions at the same time as each payroll cycle, rather than quarterly.

For many employers, this will mean reviewing payroll systems, updating internal processes, and tightening reconciliation practices. This article explains what Payday Super means, how the rules will change, and what NGS Super is doing to support employers during 2026.

Under the rules in place until 30 June 2026, employers must:

• Pay Superannuation Guarantee (SG) contributions at least quarterly.
• Ensure contributions for each quarter are paid by the statutory deadlines (28 January, 28 April, 28 July and 28 October).
• Calculate SG based on an employee’s ordinary time earnings (OTE).
• Lodge and pay contributions through their chosen clearing house.

While many employers already pay more frequently (e.g., fortnightly, monthly), the law only requires quarterly payments.

From 1 July 2026, employers will be required to:

• Pay super each time employees are paid. If you pay weekly, super is due weekly. If you pay fortnightly or monthly, the same cycle applies.
• Use digital payroll-integrated systems to send salary/wage and super information to the ATO more frequently (aligned with Single Touch Payroll processes). Employers will be required to report in Single Touch Payroll both the Qualifying Earnings (see below) and the super liability for an employee, ensuring the SG can be correctly identified.
• Ensure contributions reach the fund within the new legislative timeframe, 7 business days after payday.

Payday Super is an Australian Government initiative designed to improve retirement outcomes by ensuring super contributions are paid more regularly, transparently and on time.

The reform aims to:

• Reduce unpaid or late super.
• Improve employees’ confidence that their valuable contributions are paid promptly.
• Help employees benefit from more frequent compounding, improving long-term balances.
• Reduce long delays between wages earned and contributions appearing in their super accounts.

For employers, the shift aligns super payments with payroll, making it a typical “business-as-usual” step rather than a quarterly administration task.

Employers will experience several key changes under Payday Super:

Superannuation Guarantee (SG) contributions under Payday Super will continue to be based on ordinary time earnings (OTE). A new concept will be Qualifying Earnings.

Qualifying earnings include:

• Wages for ordinary hours of work
• Some allowances (call-back, retention, etc.)
• Paid leave
• Bonuses related to performance
• Certain commissions

Common payments excluded from OTE include:

• Overtime
• Reimbursements
• Certain travel allowances
• Payments for expenses incurred on the employer’s behalf

The rules around OTE are not changing, but employers must ensure:

• payroll systems correctly calculate OTE for each pay cycle
• SG is paid at the current rate (12% from 1 July 2025)
• any backpay or adjustments include the correct super
• Contributions arrive in employees super account within 7 business days of payments of Qualifying Earnings (this timeframe is extended to 20 business days for new employees, or when an employee changes their super fund, to allow extra time for administrative processes)

• The Small Business Superannuation Cleaning House (SBSCH) will be retired from 1 July 2026.
• Businesses that currently use the SBSCH will need to transition to an alternative service for Payday Super.

• Real-time payments using OSKO and PayID - QuickSuper has introduced New Payments Platform PayID® so employers can make super payments instantly rather than waiting days for EFT or BPAY to clear.
• Immediate matching of payments and data - Payments are matched to contribution data in real time, allowing QuickSuper to forward contributions to the fund on the same day. From January 2026, if the Fund’s receiving bank account is NPP-enabled this will be received by the fund within minutes of an Employer payment.
• Enhanced employer experience and digital features - Improved digital tools that make super contributions easier, faster and more secure, including smarter notifications, better validation, quicker payments and strengthened security.

NGS is committed to helping employers transition smoothly to Payday Super. Ahead of the 1 July 2026 commencement, we will provide:

• Employer guides
• Webinars and education sessions
• Workplace visits by our Customer Relationship Managers
• FAQs for staff and HR teams
• Support through the NGS Helpline and Employer Services Team