Superannuation reporting in Australia is undergoing a significant change with the introduction of Payday Super from 1 July 2026. These changes build on the Single Touch Payroll (STP) framework and are designed to improve compliance, reduce underpayment risk, and modernise the way employer superannuation obligations are calculated and reported.
Since the rollout of Single Touch Payroll (STP), superannuation reporting has been a key compliance focus for the Australian Taxation Office (ATO). Early analysis identified a significant gap in employer superannuation payments, estimated at around AUD 6 billion, which led to further refinement of reporting requirements and the evolution towards Payday Super.
Historically, superannuation has been calculated on Ordinary Time Earnings (OTE), which includes earnings linked to an employee’s standard working hours. Employers currently report both OTE and associated Superannuation Guarantee (SG) liabilities through STP to the ATO.
From 1 July 2026, the existing framework will transition to a new model based on Qualifying Earnings (QE) and enhanced Super Liability reporting.
Key changes include:
Under the new framework:
A key structural change under Payday Super is the transition from a quarterly to an annual Maximum Contribution Base (MCB).
Under the current system, SG obligations are assessed quarterly. From 1 July 2026, the MCB will operate on an annual basis, meaning:
The following detailed monthly comparison illustrates the impact of the transition from a quarterly Maximum Contribution Base (MCB) model to an annual MCB framework under Payday Super.
Standard Salary Example
| Existing Setup | Changes 1st July 2026 |
| Monthly Salary | Earnings Liable for Existing Quarterly MCB | SG | YTD Total of Super Paid | Earnings Liable for Payday Super Annual MCB | SG | YTD Total of Super Paid | |
| July | 33000 | 33000 | 3960 | 3960 | 33000 | 3960 | 3960 |
| August | 33000 | 29500 | 3540 | 7500 | 33000 | 3960 | 7920 |
| September | 33000 | 0 | 0 | 7500 | 33000 | 3960 | 11880 |
| October | 33000 | 33000 | 3960 | 11460 | 33000 | 3960 | 15840 |
| November | 33000 | 29500 | 3540 | 15000 | 33000 | 3960 | 19800 |
| December | 33000 | 0 | 0 | 15000 | 33000 | 3960 | 23760 |
| January | 33000 | 33000 | 3960 | 18960 | 33000 | 3960 | 27720 |
| February | 33000 | 29500 | 3540 | 22500 | 33000 | 3960 | 31680 |
| March | 33000 | 0 | 0 | 22500 | 6830 | 819.6 | 32499.6 |
| April | 33000 | 33000 | 3960 | 26460 | 0 | 0 | 32499.6 |
| May | 33000 | 29500 | 3540 | 30000 | 0 | 0 | 32499.6 |
| June | 33000 | 0 | 0 | 30000 | 0 | 0 | 32499.6 |
| Total Super earnings and liability | 250000 | 30000 | 270830 | 32499.6 |
Salary with Bonus Example
| Existing Setup | Changes 1st July 2026 |
| July | Monthly Salary | Annual Bonus | Earnings Liable for Existing Quarterly MCB | SG | YTD Total of Super Paid | Earnings Liable for Payday Super Annual MCB | SG | YTD Total of Super Paid |
| July | 15000 | 15000 | 1800 | 1800 | 15000 | 1800 | 1800 | |
| August | 15000 | 50000 | 65000 | 5700 | 7500 | 65000 | 7800 | 9600 |
| September | 15000 | 15000 | 0 | 7500 | 15000 | 1800 | 11400 | |
| October | 15000 | 15000 | 1800 | 9300 | 15000 | 1800 | 13200 | |
| November | 15000 | 15000 | 1800 | 11100 | 15000 | 1800 | 15000 | |
| December | 15000 | 15000 | 1800 | 12900 | 15000 | 1800 | 16800 | |
| January | 15000 | 15000 | 1800 | 14700 | 15000 | 1800 | 18600 | |
| February | 15000 | 15000 | 1800 | 16500 | 15000 | 1800 | 20400 | |
| March | 15000 | 15000 | 1800 | 18300 | 15000 | 1800 | 22200 | |
| April | 15000 | 15000 | 1800 | 20100 | 15000 | 1800 | 24000 | |
| May | 15000 | 15000 | 1800 | 21900 | 15000 | 1800 | 25800 | |
| June | 15000 | 15000 | 1800 | 23700 | 15000 | 1800 | 27600 | |
| Total Super earnings and liability paid | 230000 | 23700 | 230000 | 27600 |
These examples demonstrate how timing of payments and annual threshold aggregation may impact total superannuation contributions and employer cashflow planning.
The introduction of Payday Super will require employers to review payroll and compliance frameworks, including:
With implementation approaching, employers should begin preparing by:
Early preparation will help ensure a smooth transition and reduce compliance risk.
For further detailed guidance on payroll, employment law and compliance in Australia, visit our Australia Global Insights on the activpayroll website.
If you require support in preparing for upcoming changes to superannuation arrangements in Australia, please get in touch. Complete our Contact Us form and a member of our expert team will be happy to assist with your queries.