The way you pay your employees’ superannuation contributions is changing!

Currently super guarantee payments must be received by the nominated super fund by the 28 th day of the month following the end of the quarter.

However, from 1 July 2026 you will need to pay your employees’ super at the same time as you pay their salary and wages – or ‘Payday’.

Whilst this change will be beneficial for both employers and employees, some careful planning may be required to ensure you meet your obligations on time.

Key changes:

• You must pay your employees’ super contributions on the same day you pay their salaries and wages

• All payments must be processed through a super clearing house

• Super funds must receive employees’ super guarantee contributions no later than 7 business days after payday

• An extended timeframe of 20 days applies for new employees

• Qualifying Earnings (QE) is the new term used for the types of payments you make to employees that are used to calculate their super entitlements

What employers need to do:

• Ensure your employees super details are correct

• Set up a default super fund for your business

• If you have not done so already, set up your super clearing house in your payroll software – this is the easiest way to pay your super

• Super liability is reported through Single Touch Payroll (STP), therefore it is more important than ever that you file your payruns on payday

Penalties will be swift and harsh!

The Superannuation Guarantee Charge (SGC) will apply when amounts are not received by a super fund within 7 business days of payday (excluding new employees).

What does this look like?

• Interest that compounds daily at the general interest charge rate

• An administration fee, calculated per employee

• Penalties of between 25% to 50%, depending on the employers’ prior penalties

• SGC interest and penalties are not tax deductible

Find out more about this change from the ATO here

Some tips from Cloud9!

This change is significant and may require some adjustments to your current processes, however we believe it will be a very positive change in the long run, for both employers and employees.

Don’t wait until 1 July 2026 – start now!

• Start making your super payments on payday now. There’s no need to wait!

• Clean up your current super payable. If you have any overdue amounts, get on top of them now and prepare and lodge any SGC statements.

• This will help your cashflow. It is always easier for business’ to find a smaller weekly amount than an amount that has accumulated over the quarter. See more tips on managing cash flow here!

If you have any questions or want more information please get in touch!