Payday Super
What is Payday Super?
The government has passed legislation introducing Payday Super, which comes into effect on 1 July 2026. Instead of paying super quarterly, employers will need to pay it at the same time as wages. This change aims to reduce unpaid super and help your employees grow their super balances sooner.
Countdown to Payday Super
The basics of Payday Super
Payday Super checklist
10 steps to complete before 1 July 2026
Understand the changes and timing for super payments
Review your payroll systems and cash flow
Understand what qualifying earnings (QE) is and check your software supports QE reporting
Check your employees’ super fund details are up-to-date
Communicate changes to your employees
Know where to check for processing errors and how to resolve them quickly
Understand the 7-business days rule and how long it will take for super contributions to be received by super funds
Understand the consequences of late payments and the changes to super guarantee charge (SGC)
If you’re still using the Small Business Superannuation Clearing House (SBSCH), transition to an alternative clearing house
Stay informed
Payday Super FAQs
Payday Super basics
Payday Super is the biggest change to Australia's super system in decades. The main change is that super will be paid each payday, instead of quarterly, but Payday Super also includes changes to:
- how super guarantee (SG) is calculated
- when it must be received by
- reporting
- the SGC charge
- data and payment processing.
The ATO Small Business Super Clearing House is also closing.
Qualifying earnings and super calculations
Under Payday Super, super guarantee is calculated as 12% of qualifying earnings (QE), which includes OTE and other payments. This is instead of using ordinary time earnings (OTE).
This is a new term that has been introduced in the Payday Super reform. Qualified earnings (QE) are employee earnings that will be used to calculate an employee's SG contribution from 1 July 2026 and includes:
- ordinary time earnings (OTE);
- salary sacrifice superannuation contributions
- all commissions paid to an employee, and
- other amounts paid to extended definition employees (e.g. contractors paid for their labour)
You’ll need to use Qualifying earnings (QE) as the base to calculate the SG amount payable. QE will also be used to calculate the super guarantee charge (SGC).
For many employers, the new concept of QE doesn’t change the amount of SG you are currently paying for your employees.
For more information see the qualifying earnings fact sheet on the ATO’s Payday Super resources page.
ATO Small Business Super Clearing House (SBSCH) closure
Yes, as part of the Payday Super reform, from 1 July 2026 the ATO’s Small Business Superannuation Clearing House (SBSCH) will be closed. Small businesses will need to transition to alternative solutions before it closes. See the ATO’s Payday Super resources page for more information.
You can take advantage of our free1 clearing house service. We have a long-standing partnership with Westpac’s leading clearing house platform, QuickSuper2, which provides a secure, compliant, and easy-to-use solution for managing super payments.
Yes, we offer a free1 clearing house service (QuickSuper2) to all registered CareSuper employers. QuickSuper2 is provided by Westpac and is SuperStream-compliant.
QuickSuper2 is a secure, online payment portal (clearing house) for employers, where you can submit and pay super contributions electronically.
You can also read our clearing house start up guide.
Late payments and penalties
Yes, the SGC will be assessed by the ATO and calculated based on QE. The SGC will apply when amounts aren’t received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees) and will be tax deductible.
To avoid penalties, make sure you pay super each payday and ensure your payments are received by the super fund within 7 business days of payday. If your employees' SG contributions are not paid at the same time as their pay and aren't received by their super fund within 7 days of payday, you'll be liable for the SGC. The government has also noted, the longer the period of non-compliance, the larger the SGC will be. There may also be general interest and penalties for not paying SGC.
Processing and superstream
The SuperStream data and payment standards will be revised to increase super fund acceptance of real time payments and provide better error messaging to help employers address errors faster.
Updates to SuperStream mean that if a super fund cannot accept an employee’s contribution, the messages you receive with the returned money will be:
- clearer and more specific
- standardised across all funds
- structured with both a short and detailed description
The goal is to make it easier for employers to understand what went wrong and how to fix it.
Listen to a Payday Super expert
In our recent webinar, we talked to Shane Moore from the Australian Taxation Office about the Payday Super changes and what they mean for employers.
How Payday Super will help your business
- Improving payroll processes: Integrating super payments with payroll can create a more efficient and automated system.
- Reduce payroll liabilities: Regular super payments lower the risk of accumulating large quarterly payments, streamlining cash flow management.
- Avoiding penalties: Timely payments help businesses avoid the non-deductible SGC.
- Enhance your reputation: Embracing this change early can position your business as an employer of choice, demonstrating commitment to your employees’ financial wellbeing.
What’s in it for your employees?
- Tackles delayed super: This reform ensures employees receive their SG contributions at the same time as their pay, tackling the issue of delayed or unpaid SG contributions.
- Enhanced compounding returns: Frequent contributions will ensure employees benefit from compounding investment returns and could lead to a more secure retirement.
- Better retirement outcomes: A 25-year-old could retire approx. $6,000 (1.5%) better off with Payday Super.1
- Increased visibility: Employees will have better visibility over their super, making it easier to track their SG contribution payments.
- Reduces unclaimed funds: More frequent payments will help reduce the amount of unclaimed super, boosting retirement savings.
We’re here to help
Navigating super changes can be complex, but you’re not alone. If you have questions, contact your Employer Relationship Manager or call us on 1800 005 166 (8 am–7 pm AEST, Monday–Friday).
1 We provide a free clearing house platform to employers through CareSuper’s QuickSuper portal at caresuper.com.au/quicksuper-apply through a direct arrangement with Westpac. Employer use of the portal is subject to the PDS and terms and conditions for QuickSuper. We reserve the right to revoke or amend the provision of the portal.
2 The QuickSuper service is issued by ©Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (“Westpac”), at the request of CareSuper Pty Ltd (ABN 14 008 650 628), trustee of CareSuper (ABN 74 559 365 913). Westpac terms and conditions apply to the QuickSuper service which you will be asked to accept. An offer to issue this product may be made to you by Westpac, subject to completion of the application process. The Product Disclosure Statement (PDS) for QuickSuper is available on the Westpac website. You should consider the PDS before deciding to accept any offer made by Westpac to issue the product.