Payday Super is coming. How it works?
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From 1 July 2026 employers must pay employees their super guarantee on payday, at the same time as their salary and wages.
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Super guarantee is:
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calculated as 12% of an employee's qualifying earnings (QE)
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paid to an employees’ super fund on payday and received by the super fund within 7 business days.
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There are some exceptions to the 7-day deadline:
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First contribution for a new employee or super fund
The payment deadline is extended for the first eligible super contribution you are making:
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for a new employee
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to a new complying super fund for an existing employee after you have stopped making contributions to another super fund.
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In these situations, the contribution must be received by the super fund within 20 business days after the relevant payday.
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Out-of-cycle payments
If you make a payment of qualifying earnings to an employee that is out of cycle with their regular payday, your super contribution must be received by the super fund within 7 business days after the next payment of qualifying earnings to the employee that is not out of cycle.
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Exceptional circumstances affecting multiple employers
The ATO can determine that a class of employers are affected by an exceptional circumstance and the period for which the employers are impacted.
If an exceptional circumstance determination covers you and the current payday, your super contributions must be received by super funds before the later of:
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20 business days after the current pay day
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20 business days after the day that the determination is made.
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Super Guarantee Charge:
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From 1 July 2026, the Super Guarantee Charge 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 Super Guarantee Charge:
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is assessed by the ATO
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is calculated based on QE
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includes interest that compounds daily at the general interest charge rate
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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
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is tax deductible
What does payday super mean for employers?
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While this change offers clear benefits for employees, employers need to prepare their payroll processes for the new requirements. The move to payday super will require businesses to update their payroll processes to ensure super contributions are made with each pay cycle.
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Potential challenges for small and medium sized NPF organisations
For many employers, transitioning to a more frequent super payment schedule may mean challenges, including:
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Increased administrative workload: Instead of processing super payments four times a year, employers will now have to do this with every payroll run.
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Cashflow management: Employers will need to ensure they have sufficient funds available to meet super obligations more regularly, which could affect cashflow, particularly for employers with tight margins.
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Compliance risks: with super payments becoming more frequent and subject to shorter due dates, the risk of falling behind on contributions may increase, leading to penalties under the Superannuation Guarantee Charge (SGC) framework.
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How Advantage NFP can help
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We understand the challenges employers face when it comes to compliance and payroll. We can help small to medium sized NFP organisations streamline their payroll and super payment processes. This may involve upgrading your MYOB or Xero accounting software. This way, businesses won’t need to manage separate processes for paying wages and super.
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We also provide payroll processing services along with our bookkeeping services. This can help ensure businesses meet their obligations without the added stress of managing separate processes or risking late payments.
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The shift to payday super presents an opportunity for NFP organisations to modernise their payroll systems and improve compliance. Now is the time to start preparing.
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Advantage NFP
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