🛑 Payday Super is Here
(Effective 1 July 2026)
Everything you need to know!
While the above covers the standard employee pay cycle, Payday Super introduces strict new compliance rules across the board. Here is what you need to know about the exceptions and penalties.
What if I forget to approve the super payment?
Timing is critical. If Admin Happy triggers a payment but it sits awaiting your approval, it may miss the 7-business-day deadline.
The Consequence:
The ATO has real-time visibility over these payments. Missing the deadline triggers the new Superannuation Guarantee Charge (SGC). This includes compounding daily interest and a massive administrative uplift penalty of up to 60% of the shortfall.
The Solution:
If you are traveling, taking leave, or experiencing cash flow delays, communicate with us before payday so we can explore alternate approval workflows.
How does this affect Directors?
Payday Super obligations are triggered the moment you actively draw director fees. If you pay yourself weekly or monthly, the super on those drawings must be paid within 7 days of that specific transfer.
What about Contractors?
If you utilize contractors who are deemed "employees" for superannuation purposes, they are not exempt. The exact same 7-day rule applies to the payment of their invoices.
What about our final quarterly payment?
The April–June 2026 quarter is the final period governed by the old rules. Those payments must clear the employee's fund by 28 July 2026.
Additional Information:
The Grace Period for New Hires
Onboarding someone new? The ATO provides a 20-day grace period for a new employee’s first pay to allow time for their super fund details to be verified.
A New Calculation: "Qualifying Earnings"
Super is no longer calculated on Ordinary Time Earnings (OTE). The ATO has introduced a new baseline called Qualifying Earnings (QE). Your super calculation now explicitly includes commissions (even those earned outside ordinary hours) and salary sacrifice amounts. The Super Guarantee rate remains at 12%.
Need a Readiness Check?
If you're unsure how these changes impact your specific cash flow, or if you need to review your payroll budgeting to absorb the concurrent 4.75% minimum wage increase, we are here to help.
Stay Happy. Stay Compliant. Stay Up To Date.