The federal government has passed new laws that will shift superannuation guarantee payments from a quarterly cycle to a payday cycle.

From 1 July 2026, employers will need to ensure super contributions are received by an employee’s fund and able to be allocated to their account within a short timeframe after each payday.

New timing requirements for the payment of super contributions

Under the new framework, super contributions must reach the employee’s fund and be ready for allocation within seven business days of the employer paying ‘qualifying earnings’.

A period of twenty business days will apply when:

• a new employee starts,
• an employee changes funds,
• a fund becomes unable to accept contributions, or
• the Australian Taxation Office (ATO) designates certain payments as out of cycle.

Although the law does not require contributions to be made exactly on payday, doing so will be the simplest way to avoid risk. For example, if a super fund rejects a contribution because of data errors or other issues, the employer may run out of time to correct it within the seven-day window.

‘Qualifying earnings’ replace multiple earnings bases

The new system introduces a single earnings base called qualifying earnings. This replaces the previous split between ordinary time earnings (used for the calculation of super contributions) and salary or wages (used for the calculation of the SG charge, payable when super contributions are not made, or are made late).

‘Qualifying earnings’ include:

• ordinary time earnings,
• salary sacrifice amounts, and
• certain payments to contractors who fall within the extended definition of employee in the super legislation.

Some payments remain excluded, such as unused leave paid on termination.

The ATO is expected to issue updated guidance to help employers interpret the new rules.

ATO’s small business clearing house to close

The ATO currently operates a superannuation clearing house for small business employers on a fee-free basis. This clearing house will be retired from 1 July 2026. The ATO has indicated that it will consult with small businesses in relation to an alternative in the lead-up to the closure.

ATO compliance approach

The Australian Taxation Office (ATO) will have real-time visibility of SG liabilities via enhanced Single Touch Payroll reporting, through which employees’ qualifying earnings and SG contributions will be reported each payday.

For the first year of the new system, the ATO has indicated that it will take a practical, risk-based approach. Employers who attempt to comply and resolve issues quickly will be treated more favourably.

Fair Work Act underpayment risks

The Fair Work Act requires employers to make minimum superannuation contributions for employees as part of the National Employment Standards, and modern awards and enterprise agreements may set out additional entitlements. If an employer fails to meet these obligations or breaches an award or agreement, it will also breach the Fair Work Act, which can lead to significant civil penalties. Where the conduct is intentional, it may amount to a criminal underpayment (i.e. wage theft) offence attracting penalties including substantial fines or imprisonment.

Key takeaways

• The new rules apply to qualifying earnings paid on or after 1 July 2026.
• Generally, employers will need to pay superannuation contributions in time to ensure the super fund receives and can allocate the contributions within seven business days of payday.
• Employers should begin preparing now by:
  • reviewing payroll systems,
  • checking fund data processes,
  • updating onboarding procedures,
  • speaking with payroll providers or clearing houses about expected system changes, and
  • seeking expert advice if necessary.

Further assistance

HABA members can call the HABA Workplace Advice Line for advice on this topic or any other workplace relations matter. Our number is 02 9221 9911.