Payday Super

Qualifying earnings (QE) replaces OTE for calculating SG. It generally includes OTE and some additional wage components (for example, certain salary sacrifice amounts). For most employers, SG remains broadly the same - 12% of QE.

Learn more about Qualifying Earnings from the ATO.

Payments included in Ordinary Time Earnings/Qualifying Earnings

Payments excluded from Ordinary Time Earnings/Qualifying Earnings

Out-of-cycle qualifying earnings, which may include commissions, bonuses, payments in advance and back payments, will be payable on the next payday, therefore avoiding the need for an out-of-cycle super contribution. However, if there are no further paydays for the relevant employee (for example, if the employee has ceased employment) then the extension does not apply.

With Payday Super, the maximum super contributions base – the earnings cap for super contributions – will now be calculated over the whole year instead of each quarter. Pay SG each payday until the maximum super contributions base is reached, after which SG is no longer payable for the relevant employee for the rest of the financial year.

Learn more about the maximum contributions base from the ATO.

Yes. Under Payday Super (from 1 July 2026), SG is calculated each pay run as 12% of qualifying earnings and paid alongside wages. It's not spread across the year. For employees whose salary exceed the maximum contributions base, you simply pay 12% each payday until the concessional cap is reached, with no further SG payments for the remainder of the financial year.

Learn more about the maximum contributions base from the ATO.

Contractors need to be paid super if the contract is mainly for labour, they must do the work personally, are paid for time (not a result), and can't delegate. If so, treat them as employees and pay SG (12%). The ATO subcontractor superannuation decision tool is a good resource to help you decide if you have to pay super for sub/contractors.

Learn more about how to work out if you need to pay super at the ATO.

A practical readiness checklist includes:

• Confirm your payroll system supports Payday Super timing and any new reporting fields/processes.
• Map ‘non-standard’ pays (bonuses, backpay, commissions) and plan to pay super contributions on the next payday.
• Validate employee fund details early (to reduce rejections and rework).
• Review cashflow impacts of moving from ‘quarterly lump sum’ to ‘every pay run’.
• Decide your payment pathways if you currently use SBSCH (bank/direct to fund vs commercial clearing house).

See our Get ready for Payday Super how to guide and checklist (PDF) for the steps you need to take before 1 July 2026.

You can use clearing houses, but you’ll need to ensure they can meet the tighter timeframes. The ATO Small Business Super Clearing House is set to close from 1 July 2026 and closed to new users on 1 October 2025. Media Super’s SuperChoice Clearing House will be Payday Super ready to receive and process SG payments quickly.

ATO SBSCH data can no longer be accessed after 30 June 2026 (11:59pm AEST).

We recommend SBSCH users download transaction history and employee details before then, as data won't be migrated to another clearing house.

Media Super’s SuperChoice Clearing House isn't closing – only the ATO SBSCH closes 30 June 2026. Media Super’s SuperChoice is SuperStream-compliant and it's easy to register and select as your default clearing house.

Read more about how to join Media Super as a participating employer.

Yes. Media Super’s SuperChoice Clearing House already supports weekly (and more frequent) submissions ahead of 1 July 2026.

Yes. You can continue using EFT through Media Super’s SuperChoice. The clearing house supports weekly submissions for weekly-paid employees.

Yes. Enter each payday as its own submission. Weekly payroll generally means one contribution entry per week, using that pay date.

Enter each payday as its own submission. Weekly payroll generally means one contribution entry per week, using that pay date

Employers will still enter/upload contribution data and initiate payment either by file upload or manual entry.

'No manual intervention' usually means the clearing house/fund processes routing and exceptions automatically after you submit, including handling rejections within required timeframes.

If you're manually entering contributions, a quicker way is to switch to payroll-generated file uploads (or an integrated payroll/clearing house). It reduces time, errors and supports frequent payday submissions.

There are no announced changes to Media Super’s SuperChoice upload templates. If changes occur, we will publish updated templates and guidance closer to implementation.

There's no confirmed announcement that Xero will lodge directly to SuperChoice. Xero promotes its own in-product super payment option (Auto-Super). Check updates from Xero/SuperChoice closer to 1 July 2026.

You may pay an SMSF by EFT if it can accept SuperStream contributions (ABN, bank details and an ESA). The required SuperStream data must still be sent, and funds must receive the contribution within 7 business days of payday.

WPN employers can keep paying super via a SuperStream-compliant clearing house such as Media Super’s SuperChoice, and funds must accept WPN payments. STP isn't expected to be mandatory for WPN employers until 2033.

Importantly, WPN employers, like employers with an ABN, will need to pay super within 7 business days of paying wages and salary come 1 July 2026.

Yes. Media Super’s Clearing House can include subcontractors who are treated as employees for SG. You can add them in the clearing house and pay their super alongside payroll employees (including via manual entry or file upload).

If a super fund rejects a contribution, they’ll need to return contributions within 3 business days (down from 20 business days). If contributions are returned, you will need to fix the underlying problem and resubmit them within the original 7 business day window to avoid penalties. This change helps ensure employees’ super contributions are processed properly and transparently.

Exceptions to the 7-business day turnaround are:

• New employees: Contributions must be received by the employee’s chosen super fund within 20 business days after their first payday. This timeframe allows for onboarding and collecting fund details.
• Existing employees who switch to a new super fund: SG must be received by the new super fund within 20 business days after the employee’s next payday, allowing you time to set up the new fund details on your records.
• Employees who have recommenced employment.
• Payments outside the normal pay cycle (like bonuses or commissions), where SG can be paid with the next regular payday run.

The ATO will use timing data (payday to fund receipt) to spot late patterns and calculate SGC. Funds must return incorrect payments within 3 business days, but employers must still meet the original 7 business-day deadline.

Under Payday Super, funds must return rejected/incorrect contributions within 3 business days, helping employers correct issues while still meeting the original 7 business-day deadline from payday.

No. The 7 business-day deadline stays tied to the original payday. A rejection doesn't reset the clock; fix and re-submit as soon as possible to remain within the original timeframe.

If contributions don’t arrive on time/in full, employers will be assessed for SG charge/shortfalls, with stronger penalties applying (including higher penalty ranges in some circumstances). Learn more about missed or late Payday Super payments from the ATO.

If details are wrong and the resubmission is late, SGC may apply. A rejection doesn't reset the 7-business-day clock from payday—correct and re-submit as quickly as possible within the original deadline.

Yes, potentially. Employers remain responsible for paying on time. If an employee closes an account, follow up immediately and, if needed, pay into the default fund to avoid missing the 7-day deadline and risking SGC. If the employee has switched to a new super fund, you have 20 business days to make the SG payment to the new fund.

If an SMSF is non-complying or can't accept contributions, ask the employee for a complying fund. To meet deadlines, pay into their alternative or your default fund. The obligation doesn't pause; late payments may trigger SGC.

Yes. You can start Payday Super payments even if you have outstanding past-due super/SGC issues. Under the transitional rules, SG payments made during the period 1 July -28 July 2026 will first go towards any outstanding SG liabilities from pre 1 July.

See the below example taken from the Explanatory Memorandum to the Payday Super Bill:

Taba’s Gardening have one employee who is paid wages monthly.
Taba’s Gardening have historically paid SG contributions at the end of each quarter. The amount Taba’s Gardening needs to contribute to reduce its SG shortfall to nil for the quarter ending June 2026 is $2,600. However, because of a miscalculation, Taba’s
Gardening only contributes $2,500 in July 2026, leaving it with an SG shortfall of $100 for the April-June 2026 quarter.

In July, 2026 Taba’s Gardening also pays qualifying earnings to its employee under the new payday SG framework, and has an individual SG amount of $200 for the employee for that QE day.

Because Taba’s Gardening hasn’t realised its mistake, rather than making a contribution of $300 to cover both the $100 individual SG shortfall for the April-June 2026 quarter and $200 for the individual SG amount arising under the new law, it contributes only $200 to its employee’s fund in July 2026.

The result is that $100 of the $200 contribution made in July 2026 will be applied to the individual SG shortfall for the April-June 2026 quarter (reducing it to nil), with the remaining $100 applied for the QE day in July. This leaves Taba’s Gardening with a $100 individual final SG shortfall for its July 2026 QE day if it does not take further action.

Subject to legislation being passed, employers can request a new employee’s stapled fund details during onboarding, allowing them to show the employee their stapled fund before offering other fund options.

Learn more about Choice of fund from the ATO