From 1 July 2026, superannuation contributions will need to align much more closely with each payroll cycle, replacing the current quarterly system.
That means tighter timeframes, more frequent payments, and far less margin for error.
What's changing?
From 1 July 2026:
- Super must be received by the employee’s fund within seven business days of payday
- The first payment for a new employee must be made within 20 business days
- Super remains 12%, but will be calculated on Qualifying Earnings (QE) — which expands Ordinary Time Earnings to explicitly include items such as salary sacrifice and commissions
- STP reporting will now require QE and super liability to be reported per pay cycle, increasing ATO visibility
The goal is to improve transparency and reduce unpaid super.
In practice, it means payroll teams will need to be more precise with earnings calculations, reporting accuracy and payment timing.
Important: clearing house changes
The Small Business Superannuation Clearing House (SBSCH) closed to new users on 1 October 2025 and will fully cease on 30 June 2026.
Businesses currently relying on SBSCH will need to transition to an alternative solution before Payday Super commences to avoid processing gaps.
This is something employers should be actively reviewing now.
What happens if payments are late?
If contributions aren’t received on time, employers may be liable for the Super Guarantee Charge (SGC).
Under the new framework:
- The ATO assesses the liability (it is no longer self-assessed)
- Interest compounds daily
- Administrative uplifts may apply depending on compliance history
- The SGC remains tax deductible
Compliance will become more immediate — and more visible.
The ATO has also released Practical Compliance Guideline PCG 2026/1 outlining how enforcement will operate in the first year (to 30 June 2027).
What are we doing now?
We’re already preparing for the 1 July 2026 changes by:
- Updating payroll calculations to ensure Qualifying Earnings (QE) are applied correctly
- Preparing STP reporting updates to reflect QE and super liability per pay cycle
- Reviewing clearing house integrations ahead of the SBSCH closure
- Testing payment timing workflows to ensure contributions are processed within the new seven-business-day requirement
- Monitoring ongoing ATO guidance, including first-year compliance settings
Our focus is simple: compliant, seamless processing from day one.
What should you be thinking about?
There’s no immediate action required. However, this is a good time to consider:
- The cash flow impact of moving from quarterly to pay-cycle super payments
- Internal approval processes that could delay contributions
- Any reliance on the SBSCH ahead of its 30 June 2026 closure
The earlier these are reviewed, the smoother the transition will be.
Ready to de-risk your payroll?
Get in touch today to find out how EPG Group can support your compliance journey.
Rebecca Cameron
Head of Payroll - EPG Group
About our author: Rebecca Cameron
Head of Payroll
Rebecca Cameron is Head of Payroll at EPG Group, where she leads the delivery of compliant, technology-enabled payroll services for organisations across Australia and internationally. Based in Sydney, Rebecca oversees payroll operations for a global workforce management provider spanning HCM technology, staffing, migration and compliance services.
With deep expertise in payroll governance, process optimisation and regulatory change, Rebecca ensures clients remain compliant while gaining greater visibility and control over their payroll data. She is passionate about leveraging smart technology to simplify complexity, improve accuracy and deliver the transparency modern businesses need to scale with confidence.
