Answer
The ATO introduced new Qualifying Earnings rules for superannuation as part of Payday Super, which applies to pays processed through Single Touch Payroll (STP) from 1 July 2026. From this date, Qualifying Earnings replaces the previous Ordinary Time Earnings (OTE) figure in STP reporting.
What Are Qualifying Earnings?
Qualifying Earnings is the amount of an employee's pay that is subject to the Super Guarantee under Payday Super rules. Not all payments count - the ATO specifies which payment types are included. The Super Guarantee rate applies to this amount to determine the compulsory employer super contribution for that pay.
For each pay on or after 1 July 2026, Lightning Payroll calculates and reports Qualifying Earnings in the STP submission. The annual total is capped at the maximum super contribution base ($270,830 for the 2026 / 27 financial year). Employees earning above this amount in a financial year are not entitled to super on the excess.
What Lightning Payroll Does Automatically
- Calculates Qualifying Earnings for each pay processed on or after 1 July 2026.
- Applies the annual cap and prevents super being charged above the maximum super contribution base.
- Reports Qualifying Earnings in the STP event, visible in the Pays >> Single Touch >> Single Touch Mailbox event detail screen.
- Stops reporting Ordinary Time Earnings (OTE) for pays dated on or after 1 July 2026, as the ATO now requires Qualifying Earnings instead.
What Employers Need to Do
- No configuration is required. Lightning Payroll calculates and reports Qualifying Earnings automatically for any pays in the 2026 / 27 financial year and beyond.
- Confirm employee pay items are correctly categorised in pay templates. Lightning Payroll derives Qualifying Earnings from pay item classifications - if unusual allowances or deductions are in use, check they are set to the correct type so the calculation is accurate.
- Process super for each pay run via Pays >> Payday Super as normal. The Qualifying Earnings figure is used to validate and calculate the correct super obligation for each pay.
For more information about Qualifying Earnings and which payment types are included, see the ATO website: What Payments Are Qualifying Earnings?
For the full Payday Super workflow in Lightning Payroll, see How Can I Handle Payday Super In Lightning Payroll?
