The problem payroll teams are facing
Super Guarantee compliance has always sat at the end of the process – something reconciled after the fact, often manually, and frequently under pressure.
The ATO has recognised this creates risk. When Super is reported quarterly and paid with a lag, shortfalls and errors can go undetected for months. Employees miss out. Employers face penalties. Payroll teams carry the burden of fixing problems that could have been caught earlier.
Payday Super is the Government's response. It fundamentally changes the timing and transparency of Super reporting – and that means payroll teams need to understand what's shifting before 1 July 2026 arrives.
What is Payday Super?
Payday Super is a legislative reform that requires employers to pay employees' Super Guarantee contributions closer to the time wages are paid – rather than quarterly.
To support this, the ATO is requiring employers to report additional superannuation information through Single Touch Payroll at each pay event. The ATO will use this data to compare payroll records with contributions received by super funds and identify any shortfalls or delays in near real time.
What does Payday Super change about Super reporting?
Super reporting is moving from a periodic reconciliation task to a pay-run-level obligation. Under the new rules, every pay event triggers a Super reporting requirement – not just end-of-quarter reconciliation. Read our full Payday Super overview.
What's changing in STP reporting from July 2026
From 1 July 2026, the reporting basis moves from Ordinary Time Earnings to qualifying earnings, and employers include two data points in every STP submission:
- Year-to-date qualifying earnings for each employee at each payday
- Year-to-date super liability for each employee at each payday
Qualifying earnings broadens beyond Ordinary Time Earnings to include certain additional payments. This gives the ATO the information it needs to monitor whether Super contributions are being paid on time and in full. For a full explanation of qualifying earnings and the Maximum Contribution Base, see our Payday Super readiness article.
There is a transition window rather than a hard cutover. Through the 2026–27 financial year the ATO will still accept reporting based on the older basis, and reports will not be rejected for omitting qualifying earnings. From 1 July 2027 that tolerance ends — STP reports that do not include both qualifying earnings and super liability will be rejected, and penalties may apply. You do not need to request a deferral to start reporting the new basis early.
For most Affinity customers on our fully managed payroll service, these changes are handled automatically by the system. STP submissions include the required qualifying earnings and super liability fields without changes to your payroll processing workflow.
If you're reviewing payroll systems in Australia or New Zealand, our free evaluation guide and selection toolkit help you define requirements before you talk to vendors.
What Affinity is building to support compliance
Affinity is implementing a series of updates across three areas to ensure customers are ready for 1 July 2026.
Superannuation validation before payroll runs
Before a pay run is processed, Affinity will check for issues that could lead to rejected Super submissions or compliance risk. The system will flag:
- Invalid or missing super fund identifiers
- Incomplete employee superannuation information
- Incorrect or inconsistent scheme configuration
- Errors in imported or integrated data
If issues are found, you'll be notified before payroll runs – not after – giving your team time to correct the information without disrupting the pay cycle.
Improved employee Super onboarding
When a new employee is onboarded, getting their Super details right from the start matters more under Payday Super rules. Affinity is improving how super information is collected and validated at onboarding, including:
Stapled fund retrieval
Under ATO rules, employers can retrieve a new employee's existing super fund – their "stapled fund" – from the ATO. Affinity will support this by allowing the stapled fund to be retrieved and presented during onboarding, reducing the risk of duplicate accounts and ensuring the correct fund is used from day one. Employees retain the right to choose a different fund if they wish.
Super fund validation
Fund details entered through payroll administration screens, employee onboarding forms, or integrated onboarding platforms will be validated to ensure they are correct and complete before they are recorded.
Member verification
When an employee selects or updates their super fund in self-service, Affinity verifies the member and fund details with the fund before the first contribution. Confirming the account can accept the payment up front removes a common cause of failed contributions under the compressed payday timeframe.
Enhanced Super processing and reconciliation
Affinity is also evaluating enhancements to how Super payments are processed and reconciled, including potential integration with clearing house providers to support fund validation, payment processing, and improved management of payment exceptions. Further detail will be provided as these enhancements are finalised.
Is your payroll platform ready?
Affinity's automated superannuation engine is designed to handle Payday Super requirements seamlessly. We generate the files you need as part of the standard pay run process.
Explore Affinity core payrollWhat payroll teams need to do right now
Payday Super starts on 1 July 2026, so the focus now is to get your setup verified rather than leave it to the last minute. The key steps are to:
- Confirm your Software Service ID (SSID) is registered with the ATO so STP reporting works under the new scheme.
- Check that employee super details – fund identifiers, membership numbers, and scheme configurations – are accurate.
- Confirm which pay elements form part of your qualifying earnings.
- Ensure any employee-level quarterly super caps have been removed.
Affinity handles the STP reporting changes in the platform and continues to publish configuration guidance, release notes, and onboarding instructions. The goal is to keep you compliant while making super management simpler and more reliable – with as little disruption to your existing workflows as possible.
Frequently asked questions
What is Payday Super?
Payday Super is an ATO initiative requiring employers to pay Super Guarantee contributions closer to each pay event, rather than quarterly. From 1 July 2026, employers also report year-to-date qualifying earnings and year-to-date super liability through STP at every pay run, and super must reach employee funds within seven business days of pay day.
When do Payday Super changes take effect?
The changes take effect from 1 July 2026.
What are qualifying earnings and why do they matter for STP?
Qualifying earnings (QE) are the new basis for calculating the Super Guarantee under Payday Super, broadening beyond Ordinary Time Earnings to include certain additional payments. Under Payday Super, an employee's year-to-date qualifying earnings and year-to-date super liability must be reported through STP at each pay event so the ATO can monitor whether Super obligations are being met. Our Payday Super readiness article explains qualifying earnings and the Maximum Contribution Base in detail.
Will Affinity customers need to change how they process payroll?
For most customers, the STP changes will be handled automatically by the system. Affinity will provide specific guidance on any configuration changes required ahead of July 2026.
What is a stapled super fund?
A stapled super fund is an existing super account linked to an employee that follows them between jobs. Under ATO rules, employers must check whether a new employee has a stapled fund before opening a new account. Affinity will support this lookup during the onboarding process.
What happens if Super details are incorrect at the time of a pay run?
Under Payday Super rules, errors in Super reporting are visible to the ATO more quickly than before. Affinity's pre-payroll validation checks are designed to catch issues before the pay run is processed, reducing the risk of rejected submissions or compliance exposures.
Does Payday Super apply to all employers in Australia?
Yes. Payday Super applies to all Australian employers who are currently required to pay Super Guarantee contributions. The changes take effect for payments made on or after 1 July 2026.
What should employers do to prepare for Payday Super now?
With Payday Super starting on 1 July 2026, the priorities now are to verify rather than wait. Confirm your Software Service ID (SSID) is registered with the ATO, check that employee Super details – fund identifiers, membership numbers, and scheme configurations – are accurate, confirm which pay elements form your qualifying earnings, and ensure any employee-level quarterly super caps have been removed. Affinity handles the STP reporting changes in the platform and continues to publish configuration guidance.