Are you ready for PayDay Super?
What is PayDay Super?
PayDay Super is a change to how you calculate and when you pay your employees’ super guarantee (SG). From 1 July 2026 employers will need to pay employees their super guarantee on payday, at the same time as their salary and wages.
PayDay Super includes a change to the definition of earnings for superannuation payments. The calculation has shifted from Ordinary Time Earnings (OTE) to Qualifying Earnings (QE).
The ATO have advised they will be using data reported through Single Touch Payroll (STP) to determine employee’s superannuation guarantee liability.
You can access further information provided from the ATO on the key changes for PayDay Super using the links below:
Payday Super - Key changes to super guarantee
Payment deadlines for Payday Super | Australian Taxation Office
What do I need to do?
Talk to your payroll provider, finance department, bookkeeper or accountant to check if they are already across the required changes.
Audit Pay Codes for Qualifying Earnings (QE)
You will need to update all the pay codes in your payroll software, so they reflect the new calculation structure for QE. You may need to discuss with your payroll provider what other steps may be required to ensure your STP reporting is compliant.
Information from the ATO advising what payments are Qualifying Earnings (QE) can be accessed using the link below:
What payments are qualifying earnings | Australian Taxation Office
Review your Employee Onboarding
It is important you are receiving correct superannuation details for employees and relevant contractors where SG may apply. Many software providers have started using a function called Member Verification Request (MVR). This allows the superannuation details to be validated in real time with the superfund, prior to any payments being made.
This function is designed to significantly reduce the amount of rejected superannuation payments being made to funds. It also assists employers to meet their payment deadlines under PayDay Super. Speak to your software provider on how they are implementing a MVR and how you can incorporate this into your onboarding process.
ATO Small Business Clearing House
The Small Business Clearing House (SBSCH) will permanently close on 1st July 2026. Employers using this service will need to transition to a new clearing house. If you are still using this service, NOW is the time to move.
The ATO have put together a factsheet to assist employers on how to transition from the Small Business Superannuation Clearing House. This information can be accessed using the link below:
How to transition from the Small Business Superannuation Clearing House
PayDay Super Checklist for Employers
The ATO have released a checklist to help employers transition to PayDay Super. This checklist can be accessed using the link below:
Payday Super checklist for employers
If you’d like guidance or have any questions, please contact Sarah at Financial Processing Solutions 02 4721 9050