From 1 July 2026, employers will need to make super contributions to employees on ‘payday’ instead of quarterly, as payday super measure kicks in.
Payday is the date that an employer makes an Ordinary Time Earnings payment to an employee.
Each time OTE is paid, there will be a new seven day due date for contributions to arrive in the employees’ superannuation fund. This provides time for the movement of funds through the payment system, including clearing houses.
An employer will be liable for the new Superannuation Guarantee charge unless SG contributions are received by their employees’ superannuation fund within 7 calendar days of payday.
Limited exceptions include:
- Contributions for OTE paid within the first two weeks of employment for a new employee will have their due date deferred until after the first two weeks of employment; and
- Small and irregular payments that occur outside the employee’s ordinary pay cycle would not be considered a payday until the next regular OTE payment or ‘payday’ occurs.
An analysis conducted by profit-to-member fund peak body Super Members Council shows the average worker would be $7700 better off in retirement with payday super because the returns accrue and compound sooner.
The measure came as the SG contribution rate is set to rise to 12 per cent by 1 July 2025.