Payday Super Calculator

What Is Payday Super?

Payday super is a major reform to Australia's superannuation system that takes effect on 1 July 2026. Under the current system, employers must pay super quarterly — within 28 days after the end of each quarter. Under payday super, employers must pay super within 7 business days of each pay day.

The change means employees will see super contributions land in their fund every pay cycle instead of waiting up to four months. This makes it easier for workers to detect unpaid super early and reduces the compounding losses from late payments.

How to Calculate Super Per Pay Period

The formula is straightforward: multiply the employee's qualifying earnings for the pay period by the super guarantee rate. For example, an employee paid $2,500 per fortnight with a 12% SG rate would attract super of $2,500 × 0.12 = $300 per fortnight.

From 1 July 2026, the SG rate increases to 12.5%. Using the same example, fortnightly super would be $2,500 × 0.125 = $312.50.

Key Deadlines Under Payday Super

Super must be received by the employee's super fund within 7 business days of the pay day. For example, if you pay staff on a Friday, the super must reach their fund by the following Friday (excluding public holidays).

Employers should allow for processing time — electronic transfers via a clearing house may take 1–3 business days to reach the fund. The ATO recommends submitting payments at least 2 days before the deadline.

Penalties for Late Super Payments

If super is not paid on time, the employer must lodge a Super Guarantee Charge (SGC) statement with the ATO and pay the SGC. The charge includes:

• The super shortfall amount (calculated on the employee's salary and wages, not just OTE)
• Interest at 10% per annum, calculated from the start of the relevant period
• A $20 per-employee administration fee per quarter

Critically, the SGC is not tax-deductible, whereas on-time super contributions are. Late payment effectively costs the employer significantly more than paying on time.

Transitioning From Quarterly to Payday Super

Employers should start preparing well before 1 July 2026. Key steps include:

• Update payroll software to calculate and remit super each pay cycle
• Check your clearing house supports more frequent payments without additional fees
• Review cash flow — super payments will be more frequent but smaller
• Update employee onboarding processes to ensure super fund details are collected before the first pay
• Brief your accounts team on the new 7-business-day deadline and SGC consequences
• Consider the free ATO Small Business Superannuation Clearing House for streamlined processing