Payday super: Changes to super payments from 1 July 2026

Under the new system, super contributions must be received by employees’ super funds within seven business days of each payday. This shortens compliance timeframes and increases the need for accurate payroll processes.

Some key settings remain unchanged. The super guarantee rate will stay at 12%, and super will continue to apply to eligible employees, including many contractors.

Super will now be calculated on a broader definition of qualifying earnings. This includes ordinary time earnings, commissions and salary sacrifice contributions.

Reporting and enforcement will also be strengthened. Employers will need to report earnings and super through Single Touch Payroll, and penalties may apply sooner if payments are late. For many employers, particularly in agriculture where cash flow and seasonal work are common, this reform highlights the need to review payroll systems, processes and budgeting ahead of July 2026. Early planning will help support a smooth transition. 

To prepare for Payday Super:

• Review superannuation processes, including any rejected payments due to incorrect fund details
• Check payroll codes for Single Touch Payroll are accurate
• Confirm payroll software and clearing house readiness
• Plan for potential cash flow impacts
• Ensure contractor payments align with payroll processes

Find more information on the ATO website.