Are you ready for Payday Super?

From 1 July 2026 the Super guarantee rate is 12%.

Super guarantee was previously paid on ordinary time earnings (OTE), this definition has now changed to qualifying earnings (QE).

Qualifying earnings includes:

• Ordinary time earnings, i.e. payments for ordinary hours of work, including certain types of paid leave, allowances, bonuses and lump sum payments
• All commissions paid to an employee
• Earnings paid to workers under an expanded definition of employee, including payments to an independent contractor paid mainly for labour

For many employees, the new concept of QE will not change the amount of super guarantee you are paying.

Importantly, please note that salary sacrificed to superannuation is now included in the definition of QE which means that this must also be paid within 7 business days.

QE will now be the base for calculating both super guarantee and super guarantee charge amounts.  Previously two separate earnings bases were used for these calculations.

The maximum contribution base calculation from 1 July will be calculated annually (currently quarterly)

• for the 2026/27 year, once an employee has been paid $270,830 no further super contributions are required to be made for the remainder of the financial year
• consider concessional cap implications due to the change in payment frequency
  • possibility of an additional quarter of super being paid to the employees’ fund
    • June 2026 quarter payment due 28 July plus a full year of super contributions for the 2026/27 year
    • depending on timing of payroll the final super payment of the 2026/27 year may fall into the 2027/28 year
  • the ATO has indicated that it will provide transitional relief for concessional contributions however no confirmation has been received to date

Yes, there are some exceptions to the 7 day deadline:

• for new employees the payment must be received within 20 business days
• for out of cycle/ad hoc pay runs, contributions can be paid at the same time as the next QE payrun, a separate payment does not need to be made

termination payments must still comply with the 7 day deadline

No, the SBSCH is closing from 1 July.

All logins will be disabled from 11:59pm AEST on 30 June.

The March 2026 quarter or the month of May 2026 is the last period in respect of which payments can be made via the SBSCH.  We strongly recommend that you set up a new clearing house as soon as possible.

Alternative options available include:

• Your payroll system – this is the preferred option if your payroll software provides the relevant functionality

• • • MYOB/QBO/Xero have an in built ‘Pay Super’ option
    • Reckon have partnered with Colonial First State as a super clearing house https://www.reckon.com/au/reckon-accounts/super-clearing-house/

• Via a super fund – most super funds have the option to register as an employer with them and sign up to use their clearing house
  • if choosing this option it’s preferable that you use the fund that has been designated as your default super fund
• super clearing house
  • use a third party clearing house such as SuperChoice
• SMSF
  • If the only contributions you make are personal contributions for yourself or contributions to a related self-managed super fund (SMSF) you don’t need to use SuperStream because these are excepted contributions

For more information about transitioning from the SBSCH please click here

ATO Fact Sheet – How to transition from the SBSCH https://www.ato.gov.au/api/public/content/73bd8eac60b94af491397ade39fd91cf?v=30826897

Employers remain fully liable for the Super Guarantee Charge (SGC) if amounts are not received by the employees super fund within 7 business days of payday, even where delays are caused by intermediaries and are beyond their control.

However, the ATO have indicated that for the first 12 months they will not impose penalties where employers have made every effort to comply with the new legislation.  Further details regarding the ATO’s compliance approach are set out in PCG 2026/1 which can be found here:  https://www.ato.gov.au/law/view/document?DocID=COG/PCG20261/NAT/ATO/00001&PiT=99991231235958

The calculation of SGC and penalties is also changing from 1 July 2026.  The changes include:

• Interest will compound daily at the general interest rate charge instead of the current 120% per annum
• SGC will be assessed by the ATO, it will no longer be self-assessed
• It will include an administrative uplift, which can vary based on an employer’s history of meeting SG obligations
• SGC will be tax deductible (it is not currently)

Employers can reduce the amount of SGC by making late SG contributions and promptly submitting a Voluntary Disclosure Statement to the ATO.

We strongly recommend that you commence paying SG contributions on payday before 1 July 2026.  This will provide an opportunity for you to review your systems and procedures to ensure a smooth transition and that you will be compliant with the new payday super rules.

Check that you are using the most up to date version of payroll software.  Most providers have or will be updating their software functionality.

We also recommend that you ensure all employee information is up to date and review your cash flow forecasts.

If you have been using the SBSCH please ensure that you have established an alternate option.

Please contact your usual Nexia Edwards Marshall adviser.

The following resources are also available:

• ATO Fact Sheet – Payday Super Key changes to super guarantee https://www.ato.gov.au/api/public/content/2fb02c05407142a2a416ae2eb2308dc5?v=da9af6bd
• ATO Fact Sheet – Payday Super checklist for employers https://www.ato.gov.au/api/public/content/50c53f9b799c4c24b19d8c148a298551?v=22ad05c5
• ATO Fact Sheet – Payday Super Explaining qualifying earnings https://www.ato.gov.au/api/public/content/62742ead21de47fabb842d9a36b66ad2?v=a1d1cc85
• ATO Fact Sheet – SuperStream Changes https://www.ato.gov.au/api/public/content/abd07e72b374403bbfe756df339cf21c?v=b860634e