For more information about Payday Super reforms via the ATO: Payday superannuation | Australian Taxation Office

Payday Super reforms will have a major impact on employers, and on the payroll and software systems that support them.

Summary of the key changes:

Super payment timing

Superannuation contributions must reach the employee's super fund within 7 business days after each Qualifying Earnings Day (QE Day) – which is the day an employee is paid.

A ‘business day’ is defined as a day that is not a weekend and that is not a national or state-wide public holiday. This means that regional public holidays are deemed to be a business day.

There will be minimal extended timeframes for payment in specific cases as listed on the ATO website. 

New terminology - Qualifying Earnings (QE) – As per the ATO definitions available on the ATO website Payday superannuation | Australian Taxation Office

QE includes:

• Ordinary time earnings (OTE)

• All commissions

• Salary sacrifice to superannuation amounts

• Certain contractor or director payments

Overpayments of superannuation

Contributions made in excess of obligations can be carried forward for up to 12 months and applied to the earliest outstanding QE Day. This means that you can recover overpayments of super from the employee's next pay, for up to 12 months, where the employee remains employed.

Maximum Contribution Base (MCB) changes

The maximum contribution base will move from a quarterly to an annual base.

High-income employees with multiple employers in a financial year will be able to apply to the ATO for exemptions to avoid breaching their concessional caps.

Super Guarantee (SG) charge updates

A shortfall occurs when the correct amount of super isn't paid on time. There are various charges the ATO will enforce, they can be viewed on the ATO website: Payday superannuation | Australian Taxation Office

STP Reporting has a new QE total

The ATO has confirmed that from 1 July 2026, there will be a new reporting item in Single Touch Payroll (STP) for qualifying earnings (QE). This new field will ensure that super contributions can be matched more accurately to each pay event.

SuperStream have new requirements

Changes are also coming to SuperStream to improve the speed and transparency of super payments. Under the changes, super funds will be required to return contributions to employers within three business days if they’re unable to allocate them to an employee’s account — for example, where the employee has closed their account. In addition, super rejection messages will be clearer, helping employers more easily identify the reason for a rejection and how to resolve it.

Next steps

With Payday Super now law, the next 6 months will be about preparation and progress.

For more information, hear about Payday Super directly visit the ATO Payday superannuation | Australian Taxation Office

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