Payday Super: What Small Employers Must Do Now (2026 Guide)
Quick answer
Since 1 July 2026, employers must pay super guarantee at the same time as wages, every payday, and the money must reach each employee’s super fund within 7 business days. The super guarantee rate is 12% of qualifying earnings. The ATO’s Small Business Superannuation Clearing House has closed, so small employers now need another way to pay, such as payroll software or their own clearing house.
Payday Super is the biggest change to how employers pay super in decades. Before, most small businesses could pay super quarterly. Now it has to keep pace with every pay run. Here’s what changed and what to do.
What changed on 1 July 2026
| Before 1 July 2026 | From 1 July 2026 | |
|---|---|---|
| When to pay | Quarterly, by 28 days after each quarter | Every payday |
| Deadline | Quarterly due date | Received by the fund within 7 business days of payday |
| Calculated on | Ordinary time earnings | Qualifying earnings |
| ATO clearing house | Available for small business | Closed. Use another option |
| Late payment charge | Self-assessed, not tax deductible | Assessed by the ATO, tax deductible |
The 7 business day rule
The deadline is about when the fund receives the money, not when you send it. Clearing houses and banks can take a few days to process payments, so build that into your timing. Longer timeframes apply in some cases, such as a new employee’s first contribution. Check the ATO’s guidance if you’re unsure.
What are qualifying earnings?
Super is now calculated on qualifying earnings. They include ordinary time earnings plus some other amounts, such as salary sacrificed into super. For most small businesses, the amount of super won’t change much. What changes is how it’s calculated and reported in your payroll.
Your Payday Super checklist
- Check your payroll software is ready for Payday Super and reports through Single Touch Payroll
- If you used the Small Business Superannuation Clearing House, switch to your payroll software, your default fund’s portal or a commercial clearing house
- Download your old clearing house records and keep them
- Collect each new employee’s super fund details, or request their stapled fund from the ATO
- Pay super in the same pay run as wages, every time
- Allow for processing time so funds receive contributions within 7 business days
- Plan your cash flow: super now leaves your account every payday instead of once a quarter
Tip: Set up a separate “wages and super” bank account and move each pay run’s total (wages, PAYG withholding and super) into it the day before payday. You’ll never be caught short by the more frequent payments.
What happens if super is late?
If a contribution isn’t received on time, you’ll be liable for the super guarantee charge (SGC). Under the new rules, the ATO assesses the charge for you. It includes the unpaid super, interest that compounds daily and an administrative uplift that can be reduced if you come forward voluntarily. The charge is now tax deductible, but penalties for not paying it are not. Directors can also become personally liable for unpaid super.
Do sole traders have to pay super for themselves?
No. Payday Super applies to employers paying employees, and to some contractors who are paid mainly for their labour. Sole traders don’t have to pay super for themselves, although it’s often a smart, tax-effective way to save for retirement.
Want payroll off your plate?
We’ll run your bookkeeping and keep your payroll, super and BAS on track. Fixed price from $299/mo.
Frequently asked questions
Can I still pay super quarterly?
No. From 1 July 2026, super guarantee must be paid each payday and received by the fund within 7 business days.
What replaced the Small Business Superannuation Clearing House?
Nothing directly. Most employers now pay super through their payroll software, their default super fund’s employer portal or a commercial clearing house.
What’s the super guarantee rate?
12% of qualifying earnings.
I pay my staff weekly. Do I pay super weekly too?
Yes. Super follows your pay cycle, so weekly pay means weekly super payments.
This article is general information only, not tax, legal or financial advice. Check ato.gov.au or speak with a registered tax or BAS agent about your situation.
