Payday Super is the ATO's new rule that employers pay super guarantee with every payday instead of quarterly. From 1 July 2026, each contribution must reach the employee's super fund, with enough information to allocate it, within 7 business days after you pay them. It's still 12%, but now 12% of qualifying earnings, and a late payment triggers the super guarantee charge.
The ATO is clear about what hasn't changed: who you pay super for (including independent contractors paid mainly for their labour), the 12% rate and the systems you use, except the Small Business Superannuation Clearing House, which has now closed. All figures here are as the ATO pages state them, in Australian dollars, as of October 2026.
Before and after 1 July 2026
| Before 1 July 2026 | From 1 July 2026 | |
|---|---|---|
| When super is due | Within 28 days of the end of each quarter | Within 7 business days after each payday |
| What it's calculated on | 12% of ordinary time earnings | 12% of qualifying earnings |
| What you report in STP | Ordinary time earnings or super liability | Both qualifying earnings and super liability |
| Super guarantee charge | Self-assessed, interest at 10% a year, not tax deductible | Assessed by the ATO, interest compounds daily, tax deductible |
| Penalties | Up to 200% of the charge | 25% or 50% of the unpaid charge, depending on prior penalties |
| Small Business Super Clearing House | Closed to new users from 1 October 2025 | No longer accessible |
How to pay super under Payday Super
The ATO's own example makes it simple. Mohamed pays Caroline $3,000 in wages on 10 July 2026, so that's the QE day. Her super guarantee is 12% of $3,000, which is $360. It must be received by her fund no more than 7 business days later, by 21 July 2026. Mohamed pays it the same day he pays her wages, and it arrives on 15 July.
- Work out qualifying earnings. They include ordinary time earnings, all commissions, salary sacrifice contributions and other amounts previously counted as salary or wages for super.
- Calculate 12% of qualifying earnings for that payday.
- Pay it into the employee's chosen complying fund through SuperStream.
- Make sure it's received within 7 business days, with the details the fund needs to allocate it.
- Report it in Single Touch Payroll and keep a record of the calculation and payment.
The catch: received, not sent
The 7 business days are measured to when the fund receives the payment with enough information to allocate it, not when you press pay. If you use a commercial clearing house, including one inside your payroll software, you need to allow time for it to process. And if a fund can't allocate a payment, it has 3 business days to return it, not counting the day it arrived. That's why the ATO's best practice advice is to pay super on payday itself.
A business day is any day except a weekend or a public holiday for a whole state or territory, even one you're not in. The ATO's examples count Picnic Day in the Northern Territory as a non-business day for an employer anywhere.
When you get longer than 7 days
- New employee or new fund: the first contribution must be received within 20 business days after the QE day.
- Rehired workers: the first contribution after recommencing also gets 20 business days.
- Out-of-cycle payments such as bonuses, commissions or back pay: due within 7 business days after the next regular payday.
- Exceptional circumstances such as a natural disaster, if the ATO issues a determination for your area.
- The bunching rule: if a later payday's due date falls before an earlier extended due date, both share the later date.
Late payments and the super guarantee charge
A contribution is late if the fund receives it more than 7 business days after payday (unless longer applies) but before the ATO assesses you. Late contributions can reduce the super guarantee charge, but you may still owe the interest and administrative parts. From 1 July 2026 the charge is assessed by the ATO, uses qualifying earnings, compounds interest daily at the general interest charge rate and includes an administrative uplift amount, which can be reduced if you lodge a voluntary disclosure statement.
Watch the allocation rule too. By law, contributions go to the earliest payday that's still short. You can no longer choose to apply a late payment to a particular period, so one missed payday can make the next on-time payment count as late.
Getting ready if you've just started
- Ask your clearing house and payroll provider how long payments take and whether they use the New Payments Platform, which the ATO describes as almost immediate.
- Check the most common rejection causes: wrong USI or member number, ABN mismatch, wrong fund details, an inactive electronic service address for an SMSF, or wrong amounts.
- Plan cash flow: moving to super on every payday changes when it leaves your account.
- Update STP: from 1 July 2026 you report year-to-date qualifying earnings and super liability each payday. From 1 July 2027, the ATO says reports without them will be rejected and penalties may apply.
If you're self-employed, Payday Super is about your staff, not you: our guide to super for sole traders covers your own contributions. And if you're still choosing a system, start with this list of free payroll software and check each one is ready for qualifying earnings.
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My advice
Pay super in the same payroll run as wages, every time. It's the simplest way to stay inside 7 business days, and it stops the earliest-payday allocation rule from turning one slow week into a run of late payments. Then do a test payment for any new starter early, because the 20 day window for a first contribution goes faster than it sounds.
Frequently asked questions
What is Payday Super?
Payday Super is the change, from 1 July 2026, that requires employers to pay super guarantee for each payday instead of quarterly, calculated on qualifying earnings.
When is super due under Payday Super?
Contributions must be received by the employee's super fund, with enough information to allocate them, within 7 business days after you pay the employee. Longer times apply in some cases, such as new employees.
Is the super guarantee rate still 12% under Payday Super?
Yes. The percentage stays at 12%, but it's now calculated on qualifying earnings rather than ordinary time earnings.
Can I still use the Small Business Superannuation Clearing House?
No. It closed to new users on 1 October 2025, existing users had access until 30 June 2026, and it's no longer accessible.
What happens if I pay super late under Payday Super?
You're liable for the super guarantee charge, which the ATO now assesses, with interest compounding daily and an administrative uplift amount. Late contributions can reduce the charge.
