Your Payday Super questions, answered
Got questions about Payday Super? We’ve put together answers to the most common questions to help you understand the new rules and meet your obligations as an employer.
What is Payday Super?
Payday Super is a new Australian Government requirement that changes when employers must pay their employees’ Superannuation Guarantee (SG) contributions.
From 1 July 2026, employers must pay SG at the same time as salary and wages. In most cases, super contributions must reach the employee’s super fund within seven business days of payday.
If contributions are not received on time, the Australian Taxation Office (ATO) may apply penalties.
Why was Payday Super introduced?
Payday Super was introduced to ensure employees receive their super contributions more frequently and on time.
The new reporting requirements will also give the ATO greater visibility of employer super obligations, making it easier to identify unpaid or late super contributions.
What are the main changes impacting employers under Payday Super?
The main changes for employers include:
- Paying super on payday rather than quarterly, with contributions generally required to reach super funds within seven business days of payday
- Calculating super using qualifying earnings (QE), a new measure that largely aligns with current Ordinary Time Earnings (OTE) rules
- Reporting QE and super liability through Single Touch Payroll (STP) enabled software, allowing the ATO to better monitor compliance
- Managing tighter payment timeframes, including no extensions for rejected payments in most circumstances
- Stronger penalties for late or incorrect payments, including the Super Guarantee Charge (SGC), interest and other potential penalties if super is not paid correctly or on time
Frequently asked questions
Payment deadlines and exemptions
Yes, there are a few special circumstances where the ATO will provide an exemption:
- It’s your first contribution for a new employee, or to a new super fund for an existing employee.
Employers will have 20 business days (starting from the day after wages or salary are paid) to ensure the employee’s super fund successfully receives their first super payment - Out-of-cycle payments.
If you need to make an out-of-cycle SG contribution as part of a commission, bonus, advance or back payment, it won’t be due until seven business days after the next usual payday - Exceptional circumstances affecting multiple employers.
The ATO may also grant an extension due to natural disasters or widespread information and communication technology outages
Yes, you’ll need to allow enough time for the clearing house to process your payment.
It’s best practice to make your SG contributions on payday or as close as possible to payday to ensure it is processed and received on time.
Yes, if a contractor is deemed an employee for SG purposes then Payday Super rules will also apply to them.
Making contributions
You can email our Payroll General team at payroll.general@gesb.com.au and request a new payment window to be created to facilitate the ad-hoc submission. Payroll General will have this actioned for you within the same day.
Yes. While super contributions paid to employees with GESB Super and West State Super accounts are paid using the SuperStream Alternative File Format (SAFF) specifications, you are still bound under the new regulations to ensure your employees’ superannuation contributions are paid within seven business days of their salary being paid.
Cancelled or rejected contributions
Generally, no. The SG contribution must be resubmitted and received by the super fund within the original seven business day timeframe.
This is why it’s important to ensure your payroll data is accurate and complete, to minimise the risk of contributions being rejected.
If a super fund can’t accept an SG contribution from an employer, the super fund will have three business days to refund the contribution to the employer. The employer will then need to resubmit the contribution before the seven business day timeframe expires.
Under the new seven business day rule, you should expect to be notified by Payroll General about rejected contributions as soon as the pay file has been processed.
This is expected to typically occur day one or day two after monies have been debited from your account.
When we notify you about the rejected contributions, we will also create a new pay period for you on Employer Online so that you can resubmit an amended pay file as soon as it is available.
Review the contribution data to ensure it is accurate and action the warnings that appear on Employer Online.
You can also use the member search functionality in Employer Online to ensure membership details are correct and updated on the contribution return.
No. This is something your payroll providers should look to introduce, as GESB will not host Member Verification Requests (MVR) through Employer Online.
Given GESB is the default fund for the WA public sector, all non-choice (GESB Member) employer contributions will be automatically accepted, so verification for these employees via MVR is not required.
Additionally, our member search functionality in Employer Online can help verify the details of new employees with existing GESB accounts, before you make their first contribution.
You should check for current and upcoming super fund mergers, closures or changes to Unique Superannuation Identifiers (USIs). We recommend checking the fund's website to ensure you have the correct details.
The SuperGuide website also has a running list of funds that have, or are planned to be, merged with or acquired by another fund.
Late or incorrect payments and penalties
The SG Charge is a penalty that employers may need to pay to the ATO if they don’t pay their employees’ Super Guarantee (SG) contributions on time and in full to the correct super account.
The SG Charge is calculated by the ATO and includes:
- The SG shortfall
The total amount of super that should have been paid on payday, minus any eligible contributions that were made on time. - Notional earnings
The interest charged on the SG shortfall. This interest is calculated using the ATO General Interest Charge rate and compounds daily. - Administrative uplift
An additional charge of up to 60% of the SG shortfall, which is designed to help cover the costs of enforcing the SG Charge. This can be reduced for employers who voluntarily disclose SG shortfalls. - Choice loading (where applicable)
An additional penalty if an employer has not correctly followed choice of fund rules. The penalty is 25% of the value of contributions for a payday and is capped at $1,200.
The ATO has released Law Companion Ruling LCR 2026/3 to provide guidance on how the SG Charge is assessed and calculated.
You can avoid the SG Charge by paying eligible super contributions to your employees on time, in the correct amount and to a complying super fund.
The ATO’s Law Companion Ruling LCR 2026/2 outlines what is considered an eligible contribution and when it must be received by the fund.
If you realise you haven’t paid an employee’s full SG contribution on time or to the correct super fund, you should pay any outstanding contributions into their fund as soon as possible.
You can also voluntarily disclose the error to the ATO, which can lower the administrative uplift amount and your overall SG Charge.
The ATO has released Law Companion Ruling LCR 2026/3 to explain how the SG Charge is assessed and calculated, including when the administrative uplift may be reduced.
Staying on top of Payday Super
The ATO has released Law Companion Ruling LCR 2026/1 to help employers transition to Payday Super. This includes guidance on which rules from the quarterly SG system are still in effect, how the Payday Super rules apply, and the transitional rules in place to help manage any issues during the move to Payday Super.
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 18 October 2026.