Payday Super is the most significant shift in superannuation guarantee administration since SuperStream. From 1 July 2026, employers will move from quarterly super deadlines to a payday model, where super is calculated on qualifying earnings and must reach employees’ funds within strict new timeframes.
For payroll teams, this change is about more than new dates on the calendar. It affects how you calculate super, how you report through Single Touch Payroll (STP) and how quickly your systems move money through SuperStream to the super funds.
From quarterly super to Payday Super
Under the current rules, employers must ensure super guarantee (SG) contributions are received by the fund within 28 days after the end of each quarter. From 1 July 2026, that quarterly safety net disappears. Super must be paid on payday and the contribution must be received by the employee’s super fund within 7 business days, with limited exceptions.
The definition of the base for SG is changing as well. Instead of being calculated on Ordinary Time Earnings, SG will be based on qualifying earnings, a new term that captures OTE plus salary sacrifice amounts and other payments currently counted for SG.
For new starters, fund changes and fund mergers, employers will generally have up to 20 business days for the first contribution to be successfully received, before moving back to the normal 7 business day rule.
Key Payday Super changes in one snapshot
| Area | Up to 30 June 2026 | From 1 July 2026 (Payday Super) |
|---|---|---|
| Payment timing | Super due by the 28th day after the end of the quarter. | Super must be paid on payday and received by the fund within 7 business days, with limited 20 business day exceptions. |
| Calculation base | SG calculated as 12 percent of Ordinary Time Earnings. | SG calculated as 12 percent of qualifying earnings, which includes OTE, relevant salary sacrifice and other SG covered payments. |
| Maximum Contributions Base | Fixed quarterly threshold. | Annual concessional contribution cap used as the maximum base, indexed, aligning with SG and contribution cap rules. |
| Super guarantee charge (SGC) | Self assessed by employers, interest at 10 percent simple, flat administration fee, not tax deductible. | Assessed by the ATO, interest at the general interest charge rate, compounding daily, administrative uplift based on behaviour, and deductible for income tax. |
| STP reporting | STP reports OTE or super liability each pay cycle, plus limited voluntary OTE reporting. | STP will report both qualifying earnings and super liability for each employee each pay cycle, improving visibility of unpaid SG. |
| Clearing house | Small Business Superannuation Clearing House (SBCH) available to existing users until 30 June 2026. | SBCH closed from 1 July 2026. Employers will need SuperStream enabled software or alternative arrangements for contributions. |
What this means for payroll teams today
The Australian Payroll Association has rightly focused on the practical work that needs to start now. Payday Super is not a switch that can be flicked at the end of June 2026. Employers who audit their data, streamline their processes and modernise their payment rails early will be in the strongest position.
Onboarding and data quality
- Capture complete super details for employees and contractors, including fund details, TFNs and choice forms.
- Make sure your processes support real time validation of member numbers and fund identifiers to reduce rejected contributions.
System configuration and reporting
- Confirm your payroll software is tracking qualifying earnings separately from existing OTE fields.
- Test how your system will handle multiple pay events, out of cycle bonuses and adjustments against the new 7 business day rule.
- Review STP configuration to ensure it will report qualifying earnings and super liabilities as required.
Clearing house and super fund readiness
- Plan for the closure of the Small Business Superannuation Clearing House and transition to direct SuperStream payments to funds.
- Understand how your software connects to gateways and funds, and how quickly payments can clear today compared with NPP options that are coming.
Cross department collaboration
- Work with HR so that onboarding data is complete and accurate from day one.
- Coordinate with Finance about contractor payments made through accounts payable, which may attract Payday Super obligations within 7 days of payment.
- Partner with IT on resilience and outage planning, as technology failures will not pause the legislative clock.
- Prepare simple communications so employees know when to expect super to appear in their fund and where to check it.
How Lightning Payroll is preparing employers for Payday Super
Lightning Payroll already supports an end to end SuperStream workflow and is adding the final pieces required for Payday Super so that employers can keep paying super confidently as the new rules begin from 1 July 2026.
SuperStream built in, not bolted on
- Gold standard SuperStream certified and integrated with Ozedi, with contribution messaging direct to funds, not via a third party clearing house.
- Super contributions generated directly from completed pay runs on the Pays screen, which aligns perfectly with the Payday Super requirement to pay on or before payday.
- Member registration tools built into Lightning Payroll, allowing new fund accounts to be opened from inside the software.
Validation and fund data checks
- Automated validation that checks super data before anything leaves your machine, cutting down on rejections and delays.
- Integration with the ATO Fund Validation Service to keep USI and banking details current, with work underway to adopt the updated FVS specification so fund mergers and USI changes are managed smoothly.
- Planned Member Verification Request support so employers can pre verify member details before contributions are sent under Payday Super.
Payment rails that match Payday Super timelines
Today, Lightning Payroll creates bank upload files (ABA or ISO 20022 XML) that travel across the BECS network. These are familiar to businesses but settlement can vary by bank. In early 2026, Lightning Payroll is bringing in PayTo and PayID through the New Payments Platform, which gives near instant confirmation and better status visibility so employers can be confident contributions reach funds within the 7 business day window.
Positioning your business as Payday Super ready
The introduction of Payday Super is designed to close the multi billion dollar SG gap and ensure that workers see super contributions landing in their account shortly after each payday. Employers that move early will not only avoid penalties and super guarantee charge exposure, they will also build trust with staff by delivering on entitlements in real time.
This change rewards employers who invest in modern payroll systems that connect securely to funds, validate data before lodgement and support faster payment options. Lightning Payroll has been sending SuperStream contributions through Ozedi since 2014 and is tailoring its roadmap specifically to the ATO Payday Super timetable, which positions it as a specialist solution for Australian employers facing these reforms.
Whether you are a small business moving off the ATO clearing house, or a larger employer coordinating payroll, HR, finance and IT, now is the time to test your super processes in a Payday Super mindset: complete a pay run, trigger contributions immediately, and confirm money reaches funds on time.
See Payday Super in Lightning Payroll
Lightning Payroll provides live workflows, detailed FAQs and a demo that show exactly how contributions move from a completed pay run to the super funds in a way that lines up with ATO guidance on Payday Super.
Lightning Payroll acknowledges and thanks the Australian Payroll Association for providing valuable insights that informed much of the technical content in this article. This summary is provided for general information only and should not be taken as professional advice. Employers should confirm their obligations directly with the relevant legislation and official guidance.
Photo by Andrew Neel on Unsplash