Starting 1 July 2026, the way you pay superannuation to your staff will change from a quarterly obligation to a "real-time" requirement. Here is everything you need to know to stay compliant.

Why Is This Change Happening?

The Australian Government is introducing the Pay Day Super legislation with several key goals in mind:

• Meeting Obligations: To ensure all employers meet their superannuation guarantee (SG) obligations consistently.
• Protecting Rights: To safeguard employees’ rights in accordance with national employment conditions.
• Faster Growth: To allow employee retirement incomes to grow faster through more frequent contributions and compounding interest.
• Timely Payments: To ensure superannuation is treated with the same priority as wages, reaching funds when employees are actually paid.

The Current Landscape (Pre-July 2026)

Until the new laws take effect, the current requirements remain:

• Payment Rate: 12% of Ordinary Time Earnings (as of 1 July 2025).
• Minimum Frequency: Super must be paid at least every 3 months.
• Deadlines: Payments must be received by the super funds by the 28th day of the month following the end of the quarter (e.g., October 28th for the Sept quarter).
• Voluntary Frequency: While many of our clients already choose to pay monthly, the legal "hard deadline" is currently quarterly.

The New Legislation: What Changes?

From 1 July 2026, the "Quarterly Due Date" will be a thing of the past.

• Lodgement Requirements: You must report superannuation liabilities at the same time you process your payroll (Single Touch Payroll).
• Payment Requirements: You will be required to pay your employees' superannuation on the same day you pay their salary and wages.
• 7-Day Rule: The ATO requires that the super fund receive the payment within 7 business days of the payday.

Major Changes to Clearing Houses

This legislation also brings a major shift in how payments are processed. If you currently use the ATO Small Business Superannuation Clearing House (SBSCH), please take note:

• ATO Clearing House Closure: The SBSCH will be permanently retiring on 1 July 2026. It will no longer accept payments after this date.
• Software Solutions: To remain compliant, you will need to use a commercial clearing house, typically integrated into your payroll software:
  • Xero Users: You can use the built-in Xero clearing house facility.
  • MYOB Users: You can utilise the integrated MYOB clearing house system.
  • Payroller Users: You can continue to use the Payroller system for automated super payments.

Potential Penalties for Late Payments

The ATO is tightening enforcement. Under the new "Superannuation Guarantee Charge" (SGC) framework, if a payment is not received within the 7-day window:

• SGC Liability: You will be liable for the Superannuation Guarantee Charge, which includes the unpaid super plus interest.
• Administrative Uplift: A new penalty (replacing the old $20 fee) may apply, potentially adding 25% to 50% on top of the unpaid amount for non-compliance.
• Interest: Notional interest will be calculated daily from the payday, making delays very costly.
• Director Liability: The ATO maintains the power to hold directors personally liable for unpaid super through Director Penalty Notices (DPNs).

Our Next Steps:

We will be in touch with all of our clients who have employees over the coming months to review your current payroll setup and assist with a smooth transition to a Pay Day Super-compliant system.

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