Payday Super changes how and when employers must calculate and pay their employees’ superannuation guarantee (SG) contributions.
From 1 July 2026, employers must:
- make SG contributions into an employee’s super fund within 7-business days of payday. Until 1 July, the obligation was to make quarterly contributions; and
- calculate superannuation on the basis of an employee’s ‘qualifying earnings’, which includes Ordinary Time Earnings (OTE), salary-sacrifice super amounts, and other parts of an employee’s salary or wages which are already used to calculate the super guarantee.
Although this will require employers to review their payroll systems and processes to ensure they remain compliant and may change how businesses manage payroll cash flow, on the positive side, the changes should allow for smoother payroll administration, by aligning super with pay cycles and reduce quarterly liabilities, as super is finalised progressively.
To find out more about Payday Super, you can visit the Australian Tax Office information via the following link – About Payday Super – Superannuation Changes | Australian Taxation Office or contact our team: Kristy Peacok-Smith & Thomas Du
For further information, please contact:
Kristy Peacock-Smith, Partner, Bird & Bird
kristy.peacock-smith@twobirds.com
