Updated: 15/06/26

From 1 July 2026, the way employers meet their superannuation guarantee obligations will change fundamentally.

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The new system requires employers to make the, which requires superannuation contributions to be paid in line with employees pay cycles. For most this will not change how much super is paid, but it will materially change when it must be paid and how payroll and compliance processes operate.

Under the payday super regime, employers will be required to pay superannuation guarantee contributions at the same time as salary and wages are paid be it weekly or fortnightly. The current quarterly payment buffer will no longer exist. It is also important to note that contributions must reach the employee’s fund within seven calendar days of payday. That’s a big shift from the 28 days employers currently have to send money to super funds with quarterly payments.

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The super calculation will not be based on ordinary time earnings (OTE) as in the past, but what are called qualifying earnings. This will not always result in the same amount payable but mostly will. Qualifying earnings include:

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• Ordinary time earnings (OTE), i.e. payments for ordinary hours of work, including certain types of paid leave, allowances, bonuses and lump sum payments. There are no changes to what payments are considered OTE under Payday Super.

• All commissions paid to an employee.

• Salary sacrifice amounts that would qualify as qualifying earnings had they not been sacrificed to superannuation.

• Earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour.

For some time now a failure to pay super has been a breach of workplace law. This means unpaid or late superannuation may constitute a breach of the National Employment Standards, a breach of the award, and from 1 July 2026, a breach of the payday super regime.

Most modern payroll systems (such as Xero, MYOB and Reckon) are expected to support Payday Super before it commences. If you are using older software, you will likely need to upgrade.

Because super will no longer be paid quarterly, you will also need to plan your cash flow carefully. Sufficient funds must be available to cover super at the same time wages are processed.

When engaging new employees, make sure you obtain their superannuation fund details as early as possible. Their first pay will also require super to be paid immediately.

Primary Employers Tasmania can assist agricultural businesses with their human resource management and workplace relations matters. Members receive free telephone advice, a fortnightly newsletter and on farm assistance when required.

If you have any questions about the above or the services Primary Employers Tasmania can offer contact Andrew Cameron on 0407 200 909 or email andrew@primaryemployers.com.au