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The information you need to manage it – in one place

Payday Super is now in effect, changing how and when superannuation guarantee contribution is paid. We outline what’s changed, why it matters, and how we’re supporting our employer clients.

What’s Payday Super?

From 1 July 2026, the way superannuation is paid in Australia has changed. Under the Payday Super legislation, employers are now required to pay Superannuation Guarantee (SG) contributions at the same time as salary and wages, rather than quarterly.

This reform is designed to tackle the $5 billion annual issue of unpaid super1, improve retirement outcomes through faster compounding, and increase transparency and accountability across the workforce. The Australian Taxation Office (ATO) is also receiving increased funding to identify underpayments of SG and take appropriate actions.

As your superannuation provider, we’re here to help you prepare for this transition with confidence.

What’s changed?

The Treasury Laws Amendment (Payday Superannuation) Act 2025 has introduced several key changes:

  • SG contributions must generally be paid within 7 business days of each pay day
  • A new definition of Qualifying Earnings (QE) applies to determine the SG obligation, including ordinary time earnings (OTE), salary sacrifice, and other SG-relevant payments
  • Employers who don’t comply may face increased SG Charge (SGC) penalties, including daily interest, administrative uplift, and choice loading
  • The ATO’s Small Business Superannuation Clearing House (SBSCH) closed on 1 July 2026

Why it matters

For employees, more frequent super contributions mean:

  • Earlier compounding of retirement savings
  • Greater visibility of contributions
  • Reduced risk of super theft

For employers, the change:

  • Reduces liability build-up
  • Streamlines payroll processes
  • Increases compliance pressure

Payday Super video series

Meeting the 7-day contribution deadline

Navigating payment timing

When additional time applies

Compliance and the SG Charge

Small Business Superannuation Clearing House

New Payments Platform (NPP)

Payday Super webinar series

Payday Super: Let's talk about it

50:33 mins

Watch a recording of the payday super webinar.

In this session, our experts:

  • Explain the PayDay Super changes and what they mean for your business
  • Share practical steps to support your payroll and HR teams
  • Highlight how we’ll support you as employers to transition smoothly
  • Plus answer employer questions

Payday Super is coming

60:00 mins

We go beyond the basics with industry experts from the ATO, Financial Services Council and SuperChoice and focus on what matters most for your business right now.

In this session, our experts:

  • Break down the key changes under Payday Super
  • Share real-world insights from our employers, supported by practical case studies
  • Lead a live Q&A panel to address your most pressing questions
  • Outline the three critical steps every employer needs to take now to avoid disruption and be compliant

Payday Super: Are you ready?

59:16 mins

We explore the real impact of Payday Super on payroll, processes and people with industry experts.

In this session, our experts:

  • Lead a live panel Q&A to answer your questions with clear, practical guidance
  • Explain the operational impact on payroll and systems, including timing changes, data flows, clearing house reporting and ATO error messaging
  • Share real-life examples of how employers are preparing for Payday Super
  • Outline your next steps, including tools, support and resources for a smooth and compliant transition

How you can prepare

We recommend taking the following steps to ensure a smooth transition:

  • Review Payroll Systems – Ensure your payroll software and clearing house can support real-time SG payments. Speak with your provider about system upgrades or integrations.
  • Update Employee Super Fund Details – Rejected contributions often stem from outdated fund information. Use tools like the Member Verification Request (MVR) to validate fund details before processing payments.
  • Use the Correct PRN – If you’re paying us directly, ensure you have the correct Payment Reference Number (PRN) in both the ‘Reference’ and ‘Description’ fields (these fields may be called something different in your online banking platform). We need this to match the contributions to the right member and process payments accurately. See the Australian Payments Plus guide for instructions.
  • Understand Qualifying Earnings – Get familiar with the new QE definition. It’s broader than OTE and includes salary sacrifice and other SG-relevant amounts. Accurate calculations are key to avoiding penalties.
  • Monitor Cash Flow – More frequent payments mean tighter cash flow management. Forecast your SG obligations weekly, fortnightly or monthly, depending on your pay cycle.
  • Prepare for Compliance – The ATO has released guidance outlining its compliance approach for 2026/27. Employers who act in good faith and resolve issues quickly will not be the focus of enforcement.2

IOOF’s Transact clearing house

Our secure, online clearing house facility for super contributions. You can also register for transact.

Go to Transact

We’re here to help

We’re committed to supporting you through this change with:

  • Employer resources and checklists
  • Ongoing education and webinars
  • Integration support for payroll systems

Keep an eye on this page for updates on the legislation.

Payday Super is more than a legislative change – it’s a cultural shift in how retirement savings are valued and protected. For employers, it’s an opportunity to demonstrate transparency, responsibility and care for their workforce.

Helpful resources

We've brought together practical resources to help you navigate Payday Super and manage your ongoing obligations.

Getting started with reporting

How to track a super payment or submission

How to view refund information

1 Payday super: solving the unpaid super crisis, Super Members Council, August 2025

2 ATO Practical Compliance Guideline PCG 2026/1

Get in touch

Call our friendly staff for a fast response to your query

1800 913 118

 

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Important Informatio

This article has been prepared by IOOF Investment Management Limited (IIML) ABN 53 006 695 021 AFSL 230524 as the trustee of the IOOF Portfolio Service Superannuation Fund ABN 70 815 369 818 (Fund).  IIML is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group). IOOF Employer Super is part of the IOOF Portfolio Service Superannuation Fund.The information in this article is current as at November 2025 and may be subject to change. This information may constitute general advice.

The information in this article is general in nature and does not take into account your employees’ personal objectives, financial situation or needs. Your employees should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you and your employees consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions about their superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 1800 913 118 or by searching for the applicable product at ioof.com.au