Payday Super: What employers need to know before 1 July 2026
The government has announced that from 1 July 2026, employers will be required to pay their employees’ superannuation guarantee (SC) contributions at the same time as their salary and wages (ie payday super). Contributions must be received by the employee’s nominated fund within seven business days, or 20 business days for new employees or new funds.
Employers remain responsible for late payments even where delays are caused by a clearing house, bank, or super fund, or where an employee has provided incorrect details.
System Readiness
Many payroll platforms can take close to, or more than, seven business days to process super payments, meaning system readiness and timing will be critical under Payday Super. Contact your payroll software provider to confirm what updates are planned and when. Do not assume your current system will be compliant by 1 July. Also, ensure that all employee details, including tax file numbers are accurate and up to date.
Penalties and director liability
Missing the deadline can trigger the superannuation guarantee charge (SGC), which includes the SG shortfall component, notional earnings, and an administrative uplift amount. Additional interest and penalties may also apply, depending on the circumstances. Where a company fails to meet its SG obligations, directors can be held personally liable through the ATO’s director penalty notice regime, meaning personal assets are at risk.
Act before 30 June 2026
Pay SG contributions for the April–June 2026 quarter before 30 June 2026. Contributions paid in July will land in the 2026/27 financial year alongside the first Payday Super payments, potentially pushing employees over their concessional contribution cap (which may increase with indexation for 2026/27). This could trigger excess contributions assessments and unexpected tax liabilities. The Government has flagged a possible transitional measure, but nothing is legislated. Paying before 30 June is the safest approach.
Please get in touch with us if you would like to discuss how these changes will affect your business and what steps to take in preparation.
