What is Pay Day Super?
Pay Day Super moves Superannuation Guarantee (SG) from a quarterly cadence to a pay-cycle cadence. SG will generally need to be credited to the employee’s super fund within seven business days of the qualifying earnings day (the day the employee is paid). The intended start date is 1 July 2026 (legislation introduced; not yet law at the time of writing).
Key changes at a glance
Timing and payment window
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SG must generally reach the fund within seven business days of the qualifying earnings day.
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Missing this window can expose employers to the Superannuation Guarantee Charge (SGC).
Single Touch Payroll (STP) reporting
Each pay cycle, employers will report:
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Qualifying earnings (QE) — standardised earnings used to determine SG under Pay Day Super.
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Total super liability (L) — the SG owed for that period.
This reporting supports earlier matching, monitoring and correction of contributions.
Other design elements
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Maximum contributions base (MCB) moves to an annual calculation under Pay Day Super.
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SGC deductibility: the proposal makes SGC amounts tax-deductible (excluding penalties).
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Status: Bills introduced; commencement intended 1 July 2026.
What stays the same vs what’s new
Stays the same
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SG obligations continue to apply to eligible employees (and certain contractors captured for SG).
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Core calculation obligations and record-keeping remain.
What’s new
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Faster funding: SG must be credited to funds within seven business days of the qualifying earnings day.
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More frequent reporting: STP will include QE and L each pay cycle.
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Annual MCB: the contributions cap base is calculated annually (not quarterly).
Your readiness checklist (enterprise payroll)
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Map pay cycles and banking windows
Confirm approval cut-offs and payment rails so contributions are credited within seven business days of the qualifying earnings day. -
Align super disbursements to pay day
Decide whether super is paid every cycle through your clearing house or via automated rails; validate settlement times to fund-receipt. -
Prepare for STP changes
Ensure your payroll system can produce and validate QE and super liability (L) per the new specification; plan for parallel testing and reconciliation. -
Tidy onboarding and data quality
Capture and validate fund/USI/member details upfront to reduce exceptions that delay fund crediting. -
Review contractors and special cohorts
Confirm who is in scope for SG and ensure they’re included in QE, L and payment runs. -
Cash-flow and approvals
Shift from quarterly to pay-cycle SG funding; update authorisations and second-person checks. -
Controls and evidence
Track fund receipt dates (not just file-sent time); create alerts for rejects, reversals and missed windows. -
Change management
Update policies, employee comms and training ahead of 1 July 2026.
How Affinity will support customers
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Product updates to support reporting of qualifying earnings (QE) and super liability (L) via STP.
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Configuration reviews so pay elements map correctly to QE.
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Workflow options for on-cycle super payments and exception handling to help meet the seven-business-day requirement.
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Readiness guidance (checklists, training and test plans) well ahead of 1 July 2026.
Timeline
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Legislation introduced; intended commencement 1 July 2026.
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Transition period to focus on QE/L reporting, payment workflows and evidence of fund receipt.
Frequently asked questions
What is “qualifying earnings (QE)”?
QE is the standardised earnings definition used under Pay Day Super to determine SG for a pay cycle. Employers will report QE via STP each pay.
What is “super liability (L)”?
L is the total SG owed for a pay period, reported via STP alongside QE.
What is the “qualifying earnings day”?
It’s the day the employee is paid. The seven-business-day window is measured from this day.
When do contributions have to be made?
Contributions must generally be credited to the employee’s fund within seven business days of the qualifying earnings day.
Does the maximum contributions base change?
Yes. Under Pay Day Super, the maximum contributions base is calculated annually.
Are SGC amounts tax-deductible?
Under the proposal, SGC amounts (excluding penalties) are tax-deductible.
Does this apply to contractors?
Contractors who are captured for SG purposes should be included in QE, L and payment runs.
Is Pay Day Super law yet?
The measures have been introduced with an intended start of 1 July 2026. Final obligations are subject to passage.
