Payday Super compliant payroll

Under the ATO’s Payday Super reforms, employers will be required to make a corresponding super contribution each time employees are paid. These contributions must reach the employees’ superannuation fund within seven business days of payday.

Under the new framework, Superannuation Guarantee (SG) obligations will be calculated using an employee’s qualifying earnings (QE), which combines ordinary time earnings (OTE) and other relevant payments into a single reporting figure. Employers will also need to submit QE and super payment reporting to the ATO through Single Touch Payroll (STP).

The reform is designed to deliver greater transparency, earlier super funding, and a stronger financial safety net for employees by aligning super contributions more closely with regular pay cycles.

Here are some key considerations:

• New 'due date' per pay cycle: superannuation must be paid the same day as salary and wages and received by the employee's super fund within seven business days.
• Extended usual period (exceptions): there will be exceptions to the seven business day rule in situations outside the normal cycle. For example, onboarding new employees, out-of-cycle payments such as bonuses, or natural disasters where delays may be unavoidable.
• Single Touch Payroll (STP): employees' QE and super contribution will need to be reported to the ATO through STP.
• Revised penalty regime: if contributions don't arrive within the seven-day window employers may incur Superannuation Guarantee Charge (SGC) penalties, interest and administrative uplift charges.
• Fund processing changes: super funds will have three business days to allocate or return unallocated contributions down from 20 business days.