what is payday super?

Hi, I’m Nicole Guest from the HESTA service team.

Payday Super is coming and it’s a big change to how AND how often you make super contributions for your employees. So we’re putting together a series of videos to help you get ready for the change.

So, what’s it all about? From 1 July 2026 you’ll need to pay your employees’ Super Guarantee contributions to their super fund within 7 business days of the date you pay your employees.

If you don’t, you could be liable for the Superannuation Guarantee Charge.

There will be some cases where employers will have longer to make the Super Guarantee payments, such as when it’s a new employee or when an existing employee has changed super funds.

We’ve been hearing from employers with lots of questions about Payday Super, so here are some answers to help you get prepared for the first of July.

What are the new timeframes for paying contributions under Payday Super?

First up, when do you need to pay super?

Well, the biggest change for employers is the frequency you’ll need to pay employees’ super to their fund. It will change from once a quarter to each time you pay your employees.

Super contributions need to be received by your employee’s super fund within 7 business days of each payday to avoid the Super Guarantee Charge.

Payday Super requires the reporting of super contributions through Single Touch Payroll to the Australian Taxation Office (or ATO).

Super funds also report the super contributions they receive to the ATO. This means the ATO will be able to identify any late payments more quickly and apply the Super Guarantee Charge.

In some circumstances, a longer period will apply. You’ll have up to 20 business days to make Super Guarantee contributions for a new employee or an existing employee who has changed their super fund.

Remember, though, that in most circumstances, contributions need to be received by the super fund within 7 business days after payday.

And it’s worth noting that if there’s a state or territory-wide public holiday, that day is not a business day for the purposes of Payday Super, even if you are not in that state or territory.

What are ‘qualifying earnings’?

The introduction of Payday Super has brought with it a new term: ‘qualifying earnings’ or QE. So, what is QE?

QE is all types of employment payments used to calculate super guarantee (or SG) payments, including:

• ordinary time earnings
• all commissions paid to an employee
• salary sacrifice amounts that would qualify as QE if they hadn’t been sacrificed to super, and
• earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour.

For many employees, the new concept of QE won’t change the amount of super guarantee you need to pay for them.

What are the new QE reporting requirements?

From one July 2026, each payday you’ll need to report the year-to-date amount of QE and the year to date super liability for each employee through Single Touch Payroll reporting.

What is the New Payments Platform (NPP)?

You might have heard the tax office refer to a ‘New Payments Platform’ or NPP. This is the new, faster method that clearing houses will use to send contributions to super funds. It will make super contributions more efficient and secure. 

For example, the HESTA QuickSuper clearing house has introduced Osko to allow you to make super payments instantly. Payments will be matched to contribution data in real time and received by the fund on the same day. And by switching your payment method to Osko, a PayID will be automatically registered for you to use, making the whole process faster and easier. 

Can we still use HESTA QuickSuper for Payday Super payments?

When it comes to clearing houses, you can use the HESTA QuickSuper clearing house to make super payments once Payday Super rules take effect, or you can use a clearing house of your choice, as long as it’s SuperStream compliant. Note that the Small Business Clearing House will close on 1 July 2026, so if you’re using it, it’s time to choose an alternative.

Do we need to upgrade or change our existing payroll software? 

And what about payroll software? While most payroll software providers will be set up and ready to comply with the Payday Super rules from 1 July, it’s best to check with them directly to be sure.

Checklist

We know Payday Super is a big change and there’s a lot to think about, so, here’s a summary of the actions you might need to take.

1. Ensure you've listed your default super fund and its USI (that’s the Unique Superannuation Identifier) across all systems to avoid your payments being rejected or held. If you want HESTA as your default super fund, check that you've entered HESTA’s USI across all the platforms you use for onboarding, HR, and payroll, as well as your super clearing house. Just search ‘USI’ on the HESTA website.
2. Plan for more frequent super contributions and the impacts on your cash flow.
3. If you’re using the Small Business Clearing House – now is the time to choose a different clearing house because it will close on 1 July 2026.
4. Update your onboarding processes to ensure fewer delays for initial super payments for new employees – the new rules allow 20 days for you to make their SG contributions.
5. Review your payroll data now to avoid or reduce rejected payments from 1 July 2026.   

Wrap up

Don't leave it until 30 June to make changes. Adjust your super payment cycle now so it becomes BAU for your first QE day from 1 July 2026. 

We hope that’s cleared things up for you.

There’s a handy checklist like this, plus plenty more useful information on Payday Super at hesta.com.au/payday-super, or you can go to ato.gov.au and search for ‘Payday Super’.

Look out for more HESTA videos coming soon to help you get organised ahead of 1 July. Thanks for watching.