Are you Ready for Payday Super?
- 6 days ago
- 2 min read
The change is in 3 months! And this will affect your cash flow!
From 1 July 2026, the way employers calculate superannuation will change under Payday Super.
Instead of calculating super on ordinary time earnings (OTE) alone, employers will now calculate super on qualifying earnings (QE).
For many businesses, the total super paid may not change significantly.
But the reporting requirements, compliance expectations, and risk exposure absolutely will.
If you employ staff — this matters.
What Is Payday Super?
Currently, super is paid quarterly.
Under Payday Super, super must be paid at the same time as wages.
That means:
No more quarterly buffer
No more “we’ll catch it up next BAS”
Real-time compliance
And the earnings base changes from OTE to QE.
What Are Qualifying Earnings?
Qualifying Earnings include:
✔ Ordinary Time Earnings (OTE)
✔ All commissions (even if earned outside ordinary hours)
✔ Salary sacrifice amounts (if they would otherwise be QE)
✔ Payments to certain contractors paid mainly for labour
✔ Director fees
This last point is particularly important.
Director fees attract super.
From 1 July 2026, if you pay a director $1,000 — you must also pay super immediately.
What Doesn’t Count?
Some payments do NOT attract super:
✘ Overtime (if clearly identifiable)
✘ Expense allowances expected to be fully spent
✘ Unused leave on termination (annual leave, long service leave)
✘ Genuine redundancy payments
✘ Community service leave
The distinction matters.
Misclassifying payments could result in super guarantee charge exposure.
Why This Is Bigger Than It Looks
This is not just a payroll update.
This is:
A systems change
A cash flow adjustment
A compliance shift
A reporting upgrade (STP reporting will reflect QE)
Even if the dollar amounts don’t dramatically change, the risk profile does.
And once real-time super becomes the standard, penalties become more visible.
Take the Payday Super Readiness Quiz
Not 100% Confident?
If you’re unsure about any of these answers, it may be time to review your payroll setup before 1 July 2026.
What applies to your business
What needs adjusting
How to stay compliant under Payday Super
Final Thought
The government has legislated this.
The date is set.
The businesses that prepare early will experience smooth transitions.
The ones that don’t may find themselves fixing mistakes under pressure.
If you employ staff — now is the time to get this right.
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