Payday Super: now it’s official, what do we need to know?
Payday Super changes are here, and mark one of the biggest transformations to Australia’s superannuation systems in decades. For employers this isn’t just a change in payment timing, it’s a shift toward greater transparency, fairness and trust in how Australians build their savings. This reform will positively reshape payroll, systems and processes across the country.
On 4 November 2025, the Australian Government passed two major Bills:
Together, these are known as the Payday Super reforms. Now that the legislation has passed both Houses of Parliament and received Royal Assent, it has officially become law - marking one of the biggest changes to superannuation in recent years. This shift will have a major impact on employers, and on the payroll and software systems that support them.
What are the key changes for employers?
The legislation makes it mandatory for employers to pay super contributions more frequently - on payday - rather than the current minimum quarterly obligation. This means helping employees see their savings grow in real time.
Here are the key details:
Super payment timing
Superannuation contributions must reach the employees super fund within 7 business days after each Qualifying Earnings Day (QE Day) - the day an employee is paid.
A ‘business day’ is defined as a day that is not a weekend and that is not a national or state-wide public holiday. This means that regional public holidays are deemed to be a business day.
There will be extended timeframes for payment in specific cases:
- New employees: up to 20 business days for the super to reach the super fund
- Employees changing funds - up to 20 business days for the super to reach the super fund
- Out-of-cycle payments: super due with the next regular QE Day (payday)
- Exceptional circumstances (e.g. natural disaster, widespread IT outage): up to 20 business days, determined by the ATO
These updates don’t just tighten timelines but they also raise the bar for payroll accuracy and integration. Systems that automate calculations and support real-time visibility will be key to staying compliant.
New terminology - Qualifying Earnings (QE)
QE includes:
- Ordinary time earnings (OTE)
- All commissions
- Salary sacrifice to superannuation amounts
- Certain contractor or director payments
Overpayments of superannuation
Contributions made in excess of obligations can be carried forward for up to 12 months and applied to the earliest outstanding QE Day. This means that you can recover overpayments of super from the employees next pay, for up to 12 months, where the employee remains employed.
Maximum Contribution Base (MCB) changes
The maximum contribution base will move from a quarterly to an annual base.
High-income employees with multiple employers in a financial year will be able to apply to the ATO for exemptions to avoid breaching their concessional caps.
Super Guarantee (SG) charge updates
A shortfall occurs when the correct amount of super isn't paid on time. The charge will include:
- Final SG shortfall
- Notional earnings (interest)
- Administrative uplift (60% of shortfall + interest)
- Choice loading (25% penalty for fund choice breaches)
When an employer falls short of their super obligations - for instance, by not paying the correct amount or missing a deadline - they’ll be required to pay any shortfall directly to the employees’ super fund. This differs from the current requirement to pay the SG Charge to the ATO.
Employers will also be able to submit a Voluntary Disclosure Statement (VDS) to the ATO. This new process replaces the current SG Charge Statement, streamlining how employers can self-correct and stay compliant.
What else is changing?
Delivering Payday Super successfully will require updates across the broader superannuation ecosystem, including changes to STP reporting and SuperStream processes.
STP Reporting
The ATO has confirmed that from 1 July 2026, there will be a new reporting item in Single Touch Payroll (STP) for qualifying earnings (QE). This new field will ensure that super contributions can be matched more accurately to each pay event.
Our team has been working closely with the ATO throughout the journey, and with the technical specifications now released to payroll software providers, we’re already well into designing the system enhancements needed to support Payday Super. This puts us in a strong position to deliver a smooth, reliable transition for employers as the changes roll out.
SuperStream
Changes are also coming to SuperStream to improve the speed and transparency of super payments. It’s anticipated that these updates will be introduced through new regulations, which are yet to be released. Under the changes, super funds will be required to return contributions to employers within three business days if they’re unable to allocate them to an employee’s account — for example, where the employee has closed their account. In addition, super rejection messages will be clearer, helping employers more easily identify the reason for a rejection and how to resolve it.
Next steps
With Payday Super now law, the next 6 months will be about preparation and progress. Continuing to partner with the ATO and the broader payroll community is imperative making compliance seamless, so that you can focus on your people and not the paperwork.
Between now and 1 July 2026, we’ll:
- Keep you informed as further details and guidance are released by the ATO
- Provide clear resources to help your business prepare
- Deliver system updates that make compliance with Payday Super as seamless as possible
You can count on ReadyTech to be ready.
For more information, hear about Payday Super directly from the ATO here.
