Payday Super – what employers need to know

The Australian Government has introduced new legislation known as Payday Super. This is a new Australian law starting 1 July 2026 that requires employers to pay employees’ Superannuation Guarantee (SG) at the same time as salary and wages, rather than quarterly.

Payday Super represents a change for employers in how super is calculated and when it must be paid.

While some operational details are still being finalised through Commonwealth regulations, here’s what you need to know now – and how GESB is supporting employers to prepare for the changes.

Why is Payday Super being introduced?

The changes aim to strengthen Australia’s retirement system by ensuring employees receive their contributions more regularly and transparently.

The legislation aims to:

• Reduce unpaid super
• Improve visibility of super contributions
• Increase compound interest returns over time

Payday Super will apply from 1 July 2026.

How Superannuation Guarantee (SG) will be calculated and paid

Under Payday Super, SG must be:

• Calculated at 12% of an employee’s qualifying earnings
• Paid on payday, at the same time as salary and wages
• Received by the employee’s super fund within 7 business days of payday

For new employees, an extended timeframe may apply, allowing up to 20 days for the first contribution to be received by the super fund.

What are qualifying earnings?

Qualifying earnings (QE) is a new term introduced under the legislation. It brings together:

1. Ordinary time earnings (OTE), and
2. Other payments that will be specified in legislation

The intention is to streamline how super is calculated while remaining based on the existing earnings framework. Further detail on qualifying earnings will be confirmed through Commonwealth regulations, which are still being finalised.

GESB will provide additional guidance once these details are confirmed to help employers understand any impacts on payroll calculations.

WA public sector guidelines on OTE and additional items can be found on the Department of Treasury and Finance's How to calculate superannuation contributions for public sector employees.

What does this mean for you?

Payday Super changes both payment frequency and payroll processes.

Employers will need to:

• Review and update payroll systems to calculate super on qualifying earnings
• Move from quarterly super payments (if applicable) to payday‑based payments
• Ensure contributions are paid and received by super funds within the required timeframes

What happens if super isn’t paid on time?

There are penalties for employers who do not comply, including interest charges and penalties under the Super Guarantee Charge (SGC) framework. Further information about SGC changes is available on the ATO website.

GESB recognises this may be a significant operational change for some employers and is taking steps to support you through the transition.

Faster contribution processing

As part of the broader reforms:

• Super funds must allocate (or return) contributions within 3 business days if they can’t be allocated, reduced from the current 20 days

This change will support faster processing of super contributions across the system and aligns with more frequent employer payment cycles.

How GESB is supporting employers

GESB will be adopting the Australian Government’s Payday Super legislation and is actively preparing to support employers ahead of the changes coming in later this year.

While Commonwealth regulations are still being finalised, GESB is:

• Assessing impacts to GESB schemes and employer contribution arrangements
• Reviewing and updating systems and processes to support payday‑based contributions
• Working to ensure contribution allocation timeframes align with the new requirements
• Planning guidance and communications to help employers prepare

As more details are confirmed, we’ll provide further information to help you implement any necessary changes with confidence.

Next steps for employers

While further detail is still to come, you may wish to:

• Familiarise yourself with the principles of Payday Super
• Review current payroll and super payment arrangements
• Engage with payroll providers or internal teams early
• Monitor future updates as regulatory requirements are confirmed

We’ll continue to update you as more information becomes available, so you can stay informed about how Payday Super may affect you.