The Payday Superannuation Bill has officially passed Parliament and received Royal Assent. That means from 1 July 2026, all Australian employers will need to pay superannuation within 7 business days of each payday — not quarterly as before.
Here’s a breakdown of the law and how accountants can help their clients prepare.
What Has Changed?
Until now, under the current Super Guarantee (SG) system, employers are required to:
- Calculate super on eligible employee earnings each pay cycle
- Pay super contributions at least once every quarter
- Ensure payments are received by the employee’s super fund by the quarterly due dates (28 October, 28 January, 28 April, 28 July)
This means many businesses process super quarterly even if they pay wages weekly or fortnightly.
Under the new Payday Super law (starting 1 July 2026):
- Employers must calculate and pay super every payday.
- Super must be paid within 7 business days of paying wages (pay date).
- The super contribution must be able to be allocated by the employee’s super fund (correct fund ID, member number, etc.)
- Late or misdirected payments may result in automatic penalties
This is a major shift from quarterly processing to per-pay-cycle compliance. So, instead of having until the end of each quarter, employers will need to treat super like wages — paid regularly and promptly.
Superannuation Due Dates Under Payday Super
From 1 July 2026, employers must pay super within 7 business days of each payday. But there are a few exceptions for specific situations.
Here’s what accountants need to know:
Standard Rule: 7 Business Days After Payday
This is the default rule for most pay cycles.
- Super must be paid within 7 business days after the date employees are paid (this is referred to as the Qualifying Earnings Day or QE Day).
- The due date is 7 business days, not calendar days. Which means weekends and public holidays are excluded.
Example:
If employees are paid on Monday 6 July 2026, super must be paid (and able to be allocated) by Wednesday 15 July 2026 (assuming no public holidays).
Exception No 1: New Employee or New Super Fund
If it is:
- The first time you are paying a new employee, or
- You are paying into a super fund you have not used before for that employee
You have 20 business days from payday to make the contribution.
Why this matters:
This allows time to collect fund details, confirm member numbers, and complete onboarding with the fund.
Exception No 2: Out-of-Cycle Payments
For extra payments made outside the regular pay schedule, such as:
- Commissions
- Bonuses
- Backpay
- Advance payments
Super must be paid by the end of the next regular payday (i.e. the next scheduled QE Day for that employee).
Example:
A bonus paid on Wednesday 9 July, but regular paydays are Fridays. Then the super must be paid within 7 business days of the next regular Friday payday (e.g., 18 July).
The ATO will issue further clarification via legislative instrument on what qualifies as an “out-of-cycle” payment.
Exception No 3: ATO-Granted Extension (Exceptional Circumstances)
In cases such as:
- Natural disasters
- Widespread system outages
- Other significant, documented disruptions
The ATO may grant employers an extension.
Important:
These are case-by-case and must be approved by the ATO. Extensions are not automatic.
New SGC Regime
The Act introduces a revised SGC framework that gives the ATO more power to enforce compliance:
- The SGC assessment can be issued unilaterally based on data and without prior notice.
- The SGC will include:
- The SG shortfall
- Notional interest
- Administrative uplift of up to 60%
- A loading if 'choice of fund' rules were breached
The good news: Unlike under current rules, employers will be able to claim SGC payments and late contributions as income tax deductions (except penalties and interest).
Voluntary Disclosure Is Key
If a business identifies a super shortfall before the ATO issues an assessment, it can voluntarily disclose and potentially avoid uplift penalties:
- Full remission of the 60% uplift may apply if:
- Disclosure is made within 30 days of the due date, and
- The ATO has not yet initiated an assessment
There are no more SGC statements — the voluntary disclosure replaces them.
Transition Rules
The new law applies to QE days on or after 1 July 2026.
For SG liabilities incurred before that date (e.g. old backpay), the current (old) SG rules will apply. This means accountants will need to navigate both old and new frameworks during the 2026–27 financial year, especially for payroll remediation work.
What Should Accountants Do Now?
- Review payroll software readiness.
Not all payroll systems are set up for payday super. Ensure your clients are using software that will comply (e.g. Myaccountant). - Educate clients early.
Many employers are used to quarterly habits. Start communicating that this will change. - Prepare to monitor risk.
Under PCG 2025/D5, the ATO will classify businesses as:
- Low-risk: Paid late but allocated promptly
- Medium-risk: Paid by end of quarter, but not close to payday
- High-risk: Payments missing or late past the quarter
- Encourage best practice:
- Pay within 7 business days of payday
- Fix errors early
- Use clearing houses that offer real-time tracking
- Maintain detailed records of payment dates and allocation confirmations
Final Thoughts
Payday Super will fundamentally shift how SG obligations are managed. The ATO is moving toward a real-time, data-matching compliance environment, and accountants have a critical role to play in helping businesses adjust.
By preparing now and choosing the right tools, you can guide your clients into the low-risk zone and keep them out of ATO focus.
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