EMA Note

New legislation to require employers to pay their employees’ superannuation at the same time as their salary and wages has passed Parliament.¹  From 1 July 2026, employers must pay superannuation guarantee (SG) contributions on ‘payday’, at the same time as salary and wages, replacing the current quarterly payment system. This means that employers must be prepared to make super payments in a much shorter time frame to employees’ superannuation funds. 

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Seven Business Day Deadline

Currently, employers have until 28 days after the end of each quarter to pay SG contributions into their employee’s superannuation accounts.

From 1 July 2026, employers must deposit their employees’ superannuation into accounts within seven business days of payday.² ‘Payday’ or ‘QE day’ (qualifying earnings day) is the date that an employer pays Ordinary Time Earnings (OTE) to an employee.³

Employers who miss this deadline will be liable for the Superannuation Guarantee Charge (SGC), comprising:

• SG shortfall amount (the unpaid SG contribution calculated based on salary and wages);
• Notional earnings (calculated daily at the general interest charge rate on the SG shortfall);
• Administrative uplift (initially 60% of the sum of the shortfalls and notional earnings);⁴ and
• Choice loading (additional amount if employer does not comply with choice of fund requirements).⁵

The longer the period of non-compliance, the larger the SGC will be.⁶  Employers who promptly disclose late payments through a voluntary disclosure statement may receive a reduction in the administrative uplift component of the SGC.

Superannuation funds will have only three business days (down from 20) to allocate or return contributions, meaning errors will be exposed much faster.⁷ It is therefore important for employers to ensure that they are using correct employee details and make SG contributions on time. 

Exceptions

There are some exceptions to the seven business day deadline to pay SG contributions. The following are circumstances where employers will have additional time to make SG contributions. 

New employees and switching superfunds

The first payment to a new employee, as well as where the employer needs to make contributions to a new fund or Retirement Savings Account for an existing employee. In these circumstances, employers will have until the end of the 20^th business day after payday to make the SG contribution. This is to accommodate the additional time it may take to onboard new employees and obtain details of the superfund.

Out-of-cycle payments

Payments that occur outside of the employee’s ordinary pay cycle, and may include commissions, bonuses, payments in advance, and back payments.⁸ In these circumstances, the employer will have until the next regular OTE payment (payday).

Exceptional circumstances

These are events that impact the ability of a class of employers to make SG contributions on time. For example, natural disasters, or widespread IT outages.⁹ Where an exceptional circumstances determination applies, employers will have either:

• If wages were paid before the determination was made: 20 business days from the day after the determination was made, to make the SG contribution.
• If wages were paid during the determination period: 20 business days from the payday.¹⁰

System Changes

The payday superannuation changes are supported by the following system reforms.

Small Business Superannuation Clearing House (SBSCH) Closure

The ATO’s SBSCH will be retired from 1 July 2026 as it is not fit-for-purpose for payday superannuation.¹¹ Employers currently using this service will need to transition to an alternative software that is capable of payday super payments. The ATO will engage with small business employers to support them with this transition.

Enhanced ATO visibility
The ATO will match Single Touch Payroll (STP) data with superannuation fund reporting, enabling faster identification of missing or late payments than under the quarterly system. Employers will be required to report both ordinary time earnings and total superannuation liability for each employee in STP.¹²

Increased employee visibility
Employees will be able to check their superannuation accounts within days of receiving wages, rather than waiting up to four months under the current quarterly system. They can raise non-compliance directly with their employer, the Fair Work Ombudsman, or by submitting an employee notification form to the ATO.¹³

What To Do Now

In preparation for these changes, employers should consider the following:

• Cashflow: plan for management of cashflow to meet the requirement of more frequent super payments.
• Systems and processes: review current payroll systems and contribution processes to ensure they align with payday.
• Communication of changes: inform employees about the upcoming changes and how they will be affected.
• Review account details:  ensure all employee superannuation account details are accurate in your payroll system. Incorrect details may result in returned contributions and SGC liability even if payments are made on time.

For the first 12 months after the changes begin, the ATO intends to consult on its approach to compliance and will differentiate between low and high risk employers, such that employers who make the effort to pay SG contributions in line with each pay cycle will be low risk.¹⁴

Require further information/assistance?

If you require further information or advice about these changes, please contact us.
 
This EMA Note is not comprehensive advice about your situation and does not cover all your obligations. If you require further information or advice, please contact your Consultant.

1. Treasury Laws Amendment (Payday Superannuation) Bill 2025; Superannuation Charge Amendment Bill 2025. ↩︎
2. Explanatory Memorandum, Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth), para 1.55. ↩︎
3. Payday Super Fact Sheet, Australian Government Treasury (17 September 2024), p 1. ↩︎
4. Explanatory Memorandum, Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth), p 70. ↩︎
5. Explanatory Memorandum, Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth), para 1.46. ↩︎
6. Payday Super Fact Sheet, Australian Government Treasury (17 September 2024), p 3. ↩︎
7. As above, p 4. ↩︎
8. Explanatory Memorandum, Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth), para 1.62. ↩︎
9. As above, para 1.64. ↩︎
10. As above, para 1.65. ↩︎
11. Explanatory Memorandum, Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth), para 1.131. ↩︎
12. Payday Super Fact Sheet, p 4. ↩︎
13. Payday Super Fact Sheet, p 4. ↩︎
14. House of Representatives, Second Reading Speech by Treasurer Jim Chalmers, 9 October 2025. ↩︎