As you may be aware, under the government’s proposed Payday super legislation, employers will be required to pay their employees’ super at the same time as their salary and wages.
Whilst the measure is not yet law, below is a summary of what is provided for in the draft legislation:
1.Employers will need to pay SG contributions on payday (QE Day), so they are received in an employee’s superannuation account 7 business days** of payday. **exceptional circumstances will apply (eg natural disasters, outages, merging funds, out-of-cycle pay runs, rejected stapled super fund contributions)
2.Payday is also referred to as “QE Day” (Qualifying Earnings Day). So, what are “qualifying earnings”?
Basically, qualifying earnings have a similar definition to what we know as ordinary time earnings. The ATO has provided an extensive summary of payments that constitute “Ordinary Time Earnings” – List of payments that are ordinary time earnings | Australian Taxation Office. Qualifying earnings also include superannuation salary sacrificed contributions
3.The maximum contributions base will be an annual base – not quarterly as it currently stands. The maximum contributions base will be calculated as:
Concessional contributions cap x 100/charge percentage
Eg – Maximum contributions base = ($30000 x 100)/12 = $250000
4.To support Payday Super, the ATO will require employers to start reporting both QE and Super Liability (L) amounts in STP products from 1 July 2026. Digital Service Providers offering STP services will need to update their products to allow reporting of Qualifying Earnings at a new code, Q, in the Superannuation Entitlements year-to-date field by 1 July 2026.
5.SGC amounts (excluding General Interest Charge and penalties) will become tax deductible
What can employers do to prepare for Payday Super?
Although the reforms are still in draft stage, businesses should be actively preparing. Employers will need to:
Other things to consider outside of payroll processing:
What This Means for Employees
For employees, Payday Super represents a significant win. Contributions will hit their accounts faster, allowing them to grow and compound without waiting for the quarterly cycle. It also reduces the chances of unpaid super remaining hidden until annual compliance checks.
Moving Forward
While Payday Super is not yet law, its introduction is highly likely given the government’s firm commitment. Employers that begin preparing now by auditing pay systems and updating reporting processes will be best placed to meet the July 2026 deadline without disruption.
Payday Super signals a cultural and operational shift in payroll compliance. For payroll teams, HR, and finance leaders, the message is clear: super is no longer just a quarterly obligation—it’s part of every payday.
APA Giving Payroll Professionals a Voice
APA is proud to represent payroll professionals at the table where key changes are being shaped. We are part of the ATO’s Payday Super Working Group and the DPSANZ Payday Super Focus Group, ensuring payroll has a strong voice in both government and industry discussions. These memberships keep us up to date and allow us to advocate for practical, workable solutions for payroll professionals.
📢Next update for Payday Super will be provided for APA Members in December, unless the government releases an update earlier
How APA Advisory Can Help
Transitioning to Payday Super doesn’t need to be overwhelming. At APA Advisory, we specialise in:
If you’re unsure whether your systems and processes are ready, now is the time to act. Need a pay code check or a superannuation process review? Get in touch with the APA Advisory team today — we’re here to help you prepare with confidence.
Consulting Team: https://www.austpayroll.com.au/consulting/