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About Payday Super – Superannuation Changes

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How Payday Super works Payday Super is a change to how you calculate and when you pay your employees’ super guarantee. From 1 July 2026 you must pay employees their super guarantee on payday, at the same time as their salary and wages.   Super guarantee is:  calculated as 12% of an employee’s qualifying earnings (QE), which is a new term that brings together ordinary time earnings (OTE) and other payments  paid to an employees’ super fund on payday and received by the super fund within 7 business days (unless an extended timeframe applies, such as for new employees).  You can download this page as a printable fact sheet, Payday Super (PDF 175KB)This link will download a file. What you need to do Check the information below about what’s changing. Plan ahead. Review your payroll systems and super processes and get ready to pay super guarantee more frequently. Stay informed. Keep checking these pages for updates or speak to your tax professional for advice. You don’t need to wait until 1 July 2026 to start paying super at the same time as you pay salary and wages – you can start now. What’s changing Deadline for super payments Calculating super guarantee amounts Reporting super payments Late payments and the super guarantee charge (SGC) Penalties Small Business Superannuation Clearing House (SBSCH) Checking employee data and processing payments Allocations by super funds Deadline for super payments Now Super guarantee payments must be received by a super fund within 28 days of the end of the quarter, but can be paid quarterly or more frequently, e.g. monthly. The due dates are 28 October, 28 January, 28 April and 28 July. From 1 July 2026 Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.  For more information see Payment deadlines for Payday SuperExternal Link. Calculating super guarantee amounts Now The super guarantee amount is calculated as 12% of ordinary time earnings (OTE).  From 1 July 2026 The super guarantee amount is calculated as 12% of qualifying earnings (QE). QE includes OTE, salary sacrifice contributions and other amounts that are currently included in an employee’s salary or wages for super guarantee. For more information see What payments are qualifying earningsExternal Link. Reporting super payments Now You report either OTE or super liability through Single Touch Payroll (STP).  From 1 July 2026 You report both QE and super liability through STP.  Late payments and the super guarantee charge (SGC) Now The SGC applies when amounts aren’t received by a super fund within 28 days of the end of a quarter. The SGC: is self-assessed by the employer, who must lodge an SGC statement is calculated based on salary and wages includes interest at 10% per annum includes a flat administration fee is not tax deductible.  From 1 July 2026 The SGC applies when amounts aren’t received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees). The SGC: is assessed by the ATO is calculated based on QE  includes interest that compounds daily at the general interest charge rate includes an administrative uplift, which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure is tax deductible. For more information see: Missed or late Payday Super paymentsExternal Link  The new super guarantee chargeExternal Link. Penalties Now Penalties are a maximum of 200% of the SGC, which can be remitted in part or in full. From 1 July 2026 Penalties are 25% or 50% of the unpaid SGC, depending on any prior penalties. Small Business Superannuation Clearing House (SBSCH) Now The SBSCH closed to new users on 1 October 2025. Existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super. See How to pay super. From 1 July 2026 SBSCH is no longer available.   Checking employee data and processing payments Now Super payments may take a number of days to be received by a super fund. Employers receive incomplete or inaccurate data from their employees, which causes errors when they try to contribute to a super fund and delayed payments. Employers are unaware of key changes to large super fund’s details. From 1 July 2026 To help employers and intermediaries meet the new deadlines, the SuperStream data and payment standards will be revised to: allow near real-time payments through the New Payments Platform improve error messaging so you can address errors faster provide a new member verification request, which enables employers to confirm that a super fund can match their employee contribution to the super fund for the first time and will accept a contribution for them. Improvements to the Fund Validation Service will also give employers early notice of key changes to large super fund’s details, such as fund mergers, that could affect their ability to make contributions to super funds. Allocations by super funds Now Super funds have 20 business days to allocate or return contributions.  From 1 July 2026 Super funds have 3 business days to allocate or return contributions. For more information see Changes to SuperStream. Expected change This information is not yet law The information below is intended to help you prepare for anticipated changes from 1 July 2026. For updates on the progress of the law see Payday superannuation legislation. Offering employees a stapled fund Now You must provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee.  From 1 July 2026 You can request a stapled super fund and offer this to your employee at the same time you provide their choice form. You must still provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee. 

Superannuation

About Payday Super – Superannuation Changes

Leave a Comment / Superannuation /

How Payday Super works Payday Super is a change to how you calculate and when you pay your employees’ super guarantee. From 1 July 2026 you must pay employees their super guarantee on payday, at the same time as their salary and wages.   Super guarantee is:  calculated as 12% of an employee’s qualifying earnings (QE), which is a new term that brings together ordinary time earnings (OTE) and other payments  paid to an employees’ super fund on payday and received by the super fund within 7 business days (unless an extended timeframe applies, such as for new employees).  You can download this page as a printable fact sheet, Payday Super (PDF 175KB)This link will download a file. What you need to do Check the information below about what’s changing. Plan ahead. Review your payroll systems and super processes and get ready to pay super guarantee more frequently. Stay informed. Keep checking these pages for updates or speak to your tax professional for advice. You don’t need to wait until 1 July 2026 to start paying super at the same time as you pay salary and wages – you can start now. What’s changing Deadline for super payments Calculating super guarantee amounts Reporting super payments Late payments and the super guarantee charge (SGC) Penalties Small Business Superannuation Clearing House (SBSCH) Checking employee data and processing payments Allocations by super funds Deadline for super payments Now Super guarantee payments must be received by a super fund within 28 days of the end of the quarter, but can be paid quarterly or more frequently, e.g. monthly. The due dates are 28 October, 28 January, 28 April and 28 July. From 1 July 2026 Super guarantee payments must be paid to an employees’ super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.  For more information see Payment deadlines for Payday SuperExternal Link. Calculating super guarantee amounts Now The super guarantee amount is calculated as 12% of ordinary time earnings (OTE).  From 1 July 2026 The super guarantee amount is calculated as 12% of qualifying earnings (QE). QE includes OTE, salary sacrifice contributions and other amounts that are currently included in an employee’s salary or wages for super guarantee. For more information see What payments are qualifying earningsExternal Link. Reporting super payments Now You report either OTE or super liability through Single Touch Payroll (STP).  From 1 July 2026 You report both QE and super liability through STP.  Late payments and the super guarantee charge (SGC) Now The SGC applies when amounts aren’t received by a super fund within 28 days of the end of a quarter. The SGC: is self-assessed by the employer, who must lodge an SGC statement is calculated based on salary and wages includes interest at 10% per annum includes a flat administration fee is not tax deductible.  From 1 July 2026 The SGC applies when amounts aren’t received by a super fund within 7 business days of payday (unless an extended timeframe applies, such as for new employees). The SGC: is assessed by the ATO is calculated based on QE  includes interest that compounds daily at the general interest charge rate includes an administrative uplift, which can vary based on an employer’s history of meeting super guarantee obligations and may be reduced by a voluntary disclosure is tax deductible. For more information see: Missed or late Payday Super paymentsExternal Link  The new super guarantee chargeExternal Link. Penalties Now Penalties are a maximum of 200% of the SGC, which can be remitted in part or in full. From 1 July 2026 Penalties are 25% or 50% of the unpaid SGC, depending on any prior penalties. Small Business Superannuation Clearing House (SBSCH) Now The SBSCH closed to new users on 1 October 2025. Existing users have access to the service until 30 June 2026. All users must transition to an alternative option to pay their employees’ super. See How to pay super. From 1 July 2026 SBSCH is no longer available.   Checking employee data and processing payments Now Super payments may take a number of days to be received by a super fund. Employers receive incomplete or inaccurate data from their employees, which causes errors when they try to contribute to a super fund and delayed payments. Employers are unaware of key changes to large super fund’s details. From 1 July 2026 To help employers and intermediaries meet the new deadlines, the SuperStream data and payment standards will be revised to: allow near real-time payments through the New Payments Platform improve error messaging so you can address errors faster provide a new member verification request, which enables employers to confirm that a super fund can match their employee contribution to the super fund for the first time and will accept a contribution for them. Improvements to the Fund Validation Service will also give employers early notice of key changes to large super fund’s details, such as fund mergers, that could affect their ability to make contributions to super funds. Allocations by super funds Now Super funds have 20 business days to allocate or return contributions.  From 1 July 2026 Super funds have 3 business days to allocate or return contributions. For more information see Changes to SuperStream. Expected change This information is not yet law The information below is intended to help you prepare for anticipated changes from 1 July 2026. For updates on the progress of the law see Payday superannuation legislation. Offering employees a stapled fund Now You must provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee.  From 1 July 2026 You can request a stapled super fund and offer this to your employee at the same time you provide their choice form. You must still provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don’t receive a choice form from an employee. 

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GST, Managing a Business, Payroll, Superannuation

ATO’s Free Super Clearing House to Close, Small Businesses Urged to Prepare

Leave a Comment / GST, Managing a Business, Payroll, Superannuation /

The Australian Taxation Office (ATO) is set to close its Small Business Superannuation Clearing House (SBSCH) on July 1, 2026. This move, part of the government’s ‘Payday Super’ reforms, will require employers to pay superannuation contributions concurrently with salary and wages. The closure aims to streamline super payments and improve compliance, pushing businesses towards integrated payroll software or commercial clearing house providers. Key Takeaways The ATO’s Small Business Superannuation Clearing House (SBSCH) will close on July 1, 2026. New employer registrations for the SBSCH will cease on October 1, 2025. The closure is linked to the ‘Payday Super’ reforms, mandating super payments with salary and wages from July 1, 2026. Small businesses must transition to alternative payment solutions before the closure. Why the Change? The closure of the SBSCH is a strategic shift driven by the government’s ‘Payday Super’ initiative. This reform mandates that employers pay superannuation contributions at the same time they pay their employees’ salaries and wages. The objective is to enhance compliance and ensure employees receive their super entitlements more promptly. Instead of relying on the ATO’s clearing house, the government encourages businesses to adopt modern payroll software or commercial clearing house services that integrate directly with Single Touch Payroll (STP). These systems facilitate automatic super contribution flows with each payroll cycle, aligning with the new ‘Payday Super’ requirements. Important Dates to Remember October 1, 2025: New employer registrations for the SBSCH will be closed. Businesses not already using the service will be unable to sign up. June 30, 2026: The final day the SBSCH will be operational for existing users. July 1, 2026: The SBSCH will be completely switched off. All employers must have an alternative system in place by this date. Potential Risks for Employers The closure of the SBSCH presents several challenges for small businesses: Missed Deadlines: Superannuation is considered paid only when it reaches the employee’s fund. Failure to implement a new system by July 2026 could lead to missed ‘Payday Super’ deadlines and incur the Superannuation Guarantee Charge (SGC). Increased Administrative Burden: Without a replacement system, some businesses might revert to manual payments to individual employee funds, which is unsustainable under the new rules requiring contributions with every payroll. Cash Flow Strain: The shift from quarterly super payments to real-time contributions with each pay run could create short-term cash flow difficulties for businesses without adequate financial forecasting. Alternative Solutions Several viable alternatives are available for businesses to manage their superannuation obligations post-SBSCH: Payroll Software with Integrated Clearing Houses: Platforms like Xero, MYOB, and QuickBooks offer built-in superannuation payment services designed to work seamlessly with STP, automating contributions during payroll processing. Third-Party Clearing Houses: Private providers offer clearing house services, often with fees, but provide enhanced reporting, tracking, and support to ease the transition. Industry Super Fund Services: Some industry super funds offer their own clearing house facilities, which can be suitable for businesses with employees primarily in one fund. Small business owners are strongly advised to proactively explore these options, test their cash flow under the new real-time contribution model, and implement their chosen system well in advance of the SBSCH closure to ensure a smooth transition and maintain compliance. Sources Small Businesses left exposed as ATO shuts down Small Business Super Clearing House, Australian Bookkeepers Network. The Small Business Superannuation Clearing House is closing, Australian Taxation Office. ATO is shutting down the free super clearing house for SMEs. What you should do, SmartCompany.