From 1 July 2026, employers will be required to pay superannuation with every pay cycle, not quarterly. Super will need to be calculated at 12% of qualifying earnings (a broader base than ordinary time earnings) and paid so it reaches employees’ super funds within seven days of payday. The ATO will monitor compliance in near real time, with stronger enforcement powers.
Our Take
Payday Super is more than a payroll change—it’s a compliance shift that directly links payroll accuracy, cash flow management and legal risk. Employers who have historically relied on quarterly super payments will need to adjust quickly, particularly those operating with tight margins or variable income.
The expanded definition of “qualifying earnings” increases the risk of miscalculation, especially where salary sacrifice or complex remuneration structures are in place. With real-time ATO visibility and heavier penalties for late payments, payroll errors that once went unnoticed may now trigger immediate consequences.
Businesses that prepare early will reduce disruption. Those that wait may face cash flow strain, underpayments and avoidable penalties.
Action Items
Review payroll systems - to ensure they can calculate super on qualifying earnings and process payments every pay cycle.
Update cash flow forecasting - to account for super being paid alongside wages.
Check clearing house arrangements - the ATO Small Business Superannuation Clearing House closes on 30 June 2026.
Review remuneration structures - to confirm super is calculated correctly on all relevant earnings.
Train payroll and finance teams - so timing and compliance obligations are clearly understood.
Edge Legal
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