Payday super checklist for employers – steps to stay compliant:
Welcome to our latest newsletter providing important information relevant to your business, if you have any questions, please do not hesitate to contact the office via phone or email.
From 1 July 2026, employers must pay their employees’ superannuation guarantee (SG) contributions at the same time as salary or wages. This new system is known as payday super.
Currently, most employers pay super on a quarterly basis. From July 2026, super will instead need to be paid each pay cycle.
The ATO has released a checklist to help employers prepare for this change. Below is a straightforward guide outlining what small businesses should be doing now to get ready.
If you’re an employee, this article explains what your employer will need to do on your behalf from 1 July 2026. The aim of these changes is to ensure super is paid more frequently and reaches your super fund sooner.
Now: Understand the new requirements
☐ From 1 July 2026, SG contributions must be paid on every payday
☐ SG contributions must generally reach employees’ super funds within 7 business days after payday
☐ Super will be calculated using a new concept called “qualifying earnings”, so it is important to understand what this covers. In simple terms, qualifying earnings include an employee’s ordinary time earnings (OTE) – that is, payments for ordinary hours of work, as well as certain types of paid leave, allowances, bonuses and lump sum payments. Qualifying earnings also include commissions, salary sacrificed amounts to super, and payments made to workers captured under the expanded definition of employee, such as independent contractors who are paid mainly for their labour
☐ Employers will need to report OTE/qualifying earnings and superannuation liabilities via single touch payroll (STP) software
February to March 2026: Plan and prepare
☐ Decide how your business will move from quarterly payments to payday payments
☐ Speak to us as your trusted accountant or payroll provider if unsure about how to transition to payday super
☐ Review how paying super more often will affect your cash flow and update your cash-flow forecasting and budgeting processes accordingly (we can help with this)
☐ Make sure all employee super fund details are correct and confirm member account numbers and unique superannuation identifiers are up to date to prevent any errors
☐ Fix any warning messages you receive from your employees’ super funds as incorrect details may cause payments to be rejected after 1 July 2026 causing a late payment
April to June 2026: Lock in your plans
☐ Confirm your payroll software will be ready for payday super
☐ If using a clearing house, check it can support payday super and whether updates are required
☐ If currently using the ATO Small Business Superannuation Clearing House (SBSCH), transition to an alternative clearing house provider before 1 July 2026, as the SBSCH will cease operating from that date
☐ Download and retain all SBSCH transaction history before 1 July 2026. Once the service permanently closes, records will no longer be accessible. These records may be required in the future to respond to ATO reviews, audits or employee enquiries
☐ Put a process in place to quickly fix any SG contributions payment errors
☐ Allow enough time for SG contributions to clear so the super fund receives the contribution within 7 business days after payday
☐ Keep clear records of all super payments
☐ Pay SG contributions for the January – March 2026 quarter by 28 April 2026
1 July 2026: Payday super starts
From 1 July 2026, payday super takes effect. To meet the new requirements, employers must:
☐ Pay SG contributions in full, on time and to the correct super fund. Failure to do so may result in penalties, including the superannuation guarantee charge (SGC), which can exceed the original super amount owed
☐ Ensure SG contributions are received by and allocated to employees’ super funds within 7 business days of each payday
☐ Calculate SG contributions based on qualifying earnings
☐ Report qualifying earnings and SG liabilities via STP-enabled software
☐ Pay the final quarterly SG contribution for the April – June 2026 quarter by 28 July 2026
☐ Note that the SBSCH cannot be used for any payments made on or after 1 July 2026, and no late payment offset will apply for that final quarter.
Final reminder
Start preparing early by checking that payroll software is ready, reviewing cash flow and confirming employee super details are correct. Payday super is a significant change, but with proper planning the transition can be smooth. If you are uncertain about how the new rules will affect your cash flow or payroll processes, please contact us – we are here to help ensure everything is in place before the July 2026 start date.
Commonwealth Seniors Health Card (CSHC):
What’s changing from 20 March 2026
The Commonwealth Seniors Health Card (CSHC) can be valuable for many self-funded retirees, helping reduce out-of-pocket health costs (for example, cheaper PBS medicines and other concessions). But its income tested, and an upcoming rise in deeming rates may affect some people’s eligibility.
CSHC income cut-off thresholds
To qualify, you must meet the CSHC income test - there is no assets test. Centrelink assesses your (and your partner’s) adjusted taxable income and this may also include deemed income from any account-based pensions (ABPs) you have.
The current CSHC income limits are:
$101,105 p.a. if you’re single
$161,768 p.a. for couples (combined)
$202,210 p.a. for couples separated by illness/respite care/prison.
What are deeming rates?
Deeming is the Government’s method of assuming a set rate of return on financial assets, rather than using your actual earnings. It’s designed to keep the rules simple and treat people consistently, regardless of how their money is invested.
Deeming commonly applies to assets such as:
bank accounts and term deposits
shares and managed funds.
For CSHC purposes, deeming is relevant if you have an ABP as these products are generally deemed and counted under the income test.
Deeming rates are increasing from 20 March 2026
The Government is increasing the deeming rates. From 20 March 2026, the new deeming rates will be:
1.25% (lower rate) for financial assets up to $64,200 (singles) and $106,200 (couples combined)
3.25% (upper rate) for financial assets above those thresholds.
How this could affect your CSHC
If you’re close to the CSHC income limit, higher deeming rates can increase your assessed income even if your actual investment earnings don’t change. That may mean you:
lose eligibility for the CSHC, or
don’t qualify when you otherwise expected to.
This risk is greatest for self-funded retirees who have significant taxable income in addition to their ABP where deeming applies.
What to do next
If you’re near the thresholds, it’s worth reviewing your adjusted taxable income plus any deemed income using the new deeming rates.
If you’re unsure how this impacts you, consider seeking advice. A quick calculation can often show whether you’re comfortably under the limit or sitting in the “at risk” zone as the new rates begin.
PR Jennings Pty Ltd – Accountants Mornington - Ph 5975 5183
Disclaimer: All information provided in this article is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.
Please note we at PR Jennings Pty Ltd are not licensed to provide financial product advice under the Corporations Act 2001 (Cth)and taxation is only one of the matters that must be considered when making a decision on a financial product, including on whether to make superannuation contributions. You should consider taking advice from the holder of an Australian financial services licence before making a decision on a financial product.