Payday Super is Now Law: What Employers Need to Know

Payday Super changes how and when you pay Super to employees.

With the new changes coming into effect, Super must now be paid at the same time as wages, regardless of whether you run payroll weekly, fortnightly, or monthly.

Programs such as Xero, have a feature allowing you to streamline this process to ensure compliance.

To avoid falling foul of the new compliance rules, super contributions must reach your employee’s super fund within 7 days from their pay day.

As funds can take time to process payments (and with the usual banking delays), we recommend payments should be made on the same day that wages are paid.

Reporting of superannuation payments will now be included as part of your STP (Single Touch Payroll).

This means the ATO will have greater visibility & data matching ability to check compliance.

From 1 July 2026

The super guarantee charge applies when amounts aren’t received by a super fund within 7 business days after payday (unless longer applies, such as for new employees).

The super guarantee charge:

• is assessed by the ATO (employers don’t lodge a super guarantee statement)
• is calculated based on qualifying earnings
• includes interest that compounds daily at the general interest charge rate
• includes an amount to reflect the cost of enforcement and encourage early disclosure by employers – this is called the administrative uplift amount. It can be reduced if the ATO hasn’t taken action in the past and if the employer lodges a voluntary disclosure statement
• is tax deductible.

If you have any questions, please reach out to your Accountant.