June 25, 2026 | 1 minute read

Preparing for Payday Super: Your Questions Answered

by activpayroll team

Payday Super represents the most significant reform to Australia's Superannuation Guarantee system since its introduction. At its core, the change shifts the employer obligation to pay superannuation from quarterly contributions to payments made on each employee's scheduled payday.

While the concept is straightforward, the practical implementation and financial implications for employers are far more complex. In our previous articles, we explored the proposed changes and their expected impact as details emerged. With implementation now approaching on 1 July 2026, we have compiled the following questions and answers to address some of the most common queries and explain what our processes will look like from next week.

What are the timeframes for Payday Super (PDS)?

From 1 July, employers will have 7 business days from payday for the fund to receive their employee's contribution.

Are Public Holidays included?

National Public Holidays are excluded from the 7 business days. This effectively means that only Australia Day, Good Friday, Easter Monday, Christmas Day and Boxing Day are not included in the 7-day timeframe.

We already pay our super monthly to activpayroll. How does this affect us?

Our current service is based on each pay run being funded to activpayroll with each PAF. We then submit all superannuation contributions for the month on the first working day of the following month.
From July, funding will still be required with each pay run, however we will now submit the contribution batch on each scheduled payday.
Payroll calendars have been updated to reflect this new requirement.

Our superannuation is direct debited from our account by activpayroll. Is this changing?

For the small number of clients using this arrangement, the Direct Debit will also be initiated on payday. The description will change from "Precision Clearing" to our new platform provider, "HeroClear".
Funds will be debited from the client's account within one business day.

What is the timeline for new hires or existing employees changing funds to receive their contributions?

Contributions for new hires, or employees who have provided a change of fund notification, will have 20 days for their contribution to be received by the fund.

When is the superannuation for an off cycle run due?

Superannuation payments for off cycle runs relating to missed payments, additional amounts or similar adjustments will be due on the next scheduled payday.
Superannuation for off cycle runs relating to termination and final payments will be due on that payday, as there is technically no next scheduled payday.

What is changing with activpayroll's onboarding process for new hires?

Our data requirements will remain as outlined on each input sheet. TFNs will still need to be submitted as a PDF, and all mandatory columns on the VDT must be completed.
Superannuation funds are now requiring a mobile number for all employees, particularly those opting to use the employer's default fund.

What is a Member Verification Request (MVR)?

As part of the Payday Super legislation, a mandatory Member Verification Request (MVR) has been introduced. This is an automatic electronic messaging service that must operate between the payroll engine and the clearing house to validate the member details provided by a new hire.
When we enter a new hire into the payroll engine using the information supplied on the VDT, the system will automatically submit an MVR to confirm that contributions can be sent to the nominated fund and that the fund will accept them.
A response must be received within 24 hours.

How will MVRs work and will employees be contacted?

MVRs are automated and will send the required SuperStream data to the nominated superannuation fund.
Any MVR that is initiated will also send a notification to the employee's email address. This is a mandatory requirement to inform employees that their details have been requested.
If any details are incorrect, the employee will also be notified. However, they will not be told which details are invalid, nor will they receive any links, login requests or requests to confirm personal information. They will simply be advised to contact their employer.
The sender of the notification will be activpayroll.
Any error messages returned by the nominated superannuation fund will be relayed to activpayroll, advising whether member details require correction or whether updated fund details are needed.

What if a new hire doesn't provide fund details?

Under the current framework, fund details can be obtained through an ATO Super Stapling request once an employer relationship has been established through an STP submission. From 1 July, Super Stapling will be available immediately.

Do we still need to issue Super Choice forms and a Tax File Number declaration to new hires?

Yes. Both documents should continue to be issued alongside the employment contract, and the Tax File Number declaration should be returned with the first input sheet to avoid tax being withheld at the highest marginal rate.

What is the timeline for a returned contribution?

The mandatory MVR process is designed to reduce the number of rejected or incorrectly allocated contributions. Under the new guidelines, superannuation funds will have 3 days to return a contribution that cannot be allocated, compared with the previous 20-day timeframe.

What will activpayroll's process be for a returned contribution?

Our teams already check and reconcile client accounts each morning.
From 1 July, notifications received through our payroll engine relating to contribution errors will also be reviewed daily. Where appropriate, a Super Stapling request will be submitted through the ATO and contributions will be resubmitted as soon as the funds have cleared back into our account.

What is the difference between OTE and the new Qualifying Earnings (QE)?

Ordinary Time Earnings (OTE) are the current legislated salary and wage elements used to calculate the Superannuation Guarantee. They form the basis for determining an employer's superannuation liability, which is then reported to the ATO.
Qualifying Earnings (QE) are the new reporting element introduced as part of Payday Super, replacing the OTE reference. From 1 July, both the superannuation liability and QEs will be reported separately to the ATO.
QEs are the only earnings on which the ATO requires superannuation to be calculated for the purposes of determining the Maximum Contribution Base (MCB).
For most employers, QEs and superannuation liability will be the same. However, where employment agreements, Enterprise Bargaining Agreements (EBAs) or Awards require superannuation to be paid on additional elements that are not recognised as QEs by the ATO, those amounts will continue to attract superannuation but will not count towards the MCB calculation.

What are the common elements excluded from QE where superannuation is still paid, and has activpayroll updated our settings?

Our team has been reviewing each client since the QE field became available. The most common elements removed from QE, but retained within the superannuation liability, are Employer Paid Parental Leave and Community Service Leave.
Please refer to the ATO guidance: What payments are qualifying earnings.
If you wish to change your current setup and no longer pay superannuation on either of these elements, please contact your activpayroll representative.
For any elements that are not clearly defined, such as allowances or overtime, activpayroll will contact you where clarification is required.

Have any elements previously not liable for superannuation changed?

Payments such as annual leave payouts, overtime, redundancy payments and ex gratia payments remain outside the scope of superannuation under both the current and new arrangements.
Our payroll engine will soon separate any Payment in Lieu of Notice (PILON) amount included within a redundancy payment to clearly identify that this portion is subject to superannuation. While superannuation has always been calculated on PILON, it was previously included within the Lump Sum D and Excluded Type R reporting categories. From 1 July, it will be shown separately to improve transparency.

What has changed with the Maximum Contribution Base (MCB)?

As outlined in our previous articles, the Maximum Contribution Base will move from a quarterly threshold to an annual threshold. An employer's superannuation obligation will apply at 12% of QEs from $0 to $270,830 for the 2027 financial year.
Once an employee's QEs exceed this threshold, the employer's superannuation liability will cease.

Do these changes increase the amount of superannuation an employer pays?

As discussed in our previous article, some employees who receive additional payments, such as bonuses, may now receive superannuation on amounts that would previously have exceeded the quarterly Maximum Contribution Base. Under the new annual threshold, some employees may receive the full 12% superannuation contribution on these additional payments without exceeding the annual limit.

Is there a financial impact on employers?

Employers should be aware that direct and indirect employment costs, such as State payroll tax, may be higher at the beginning of the financial year before reducing as employees approach the annual Maximum Contribution Base.
Budgets and cash flow forecasts should also be reviewed to reflect the increased cash outlay associated with paying superannuation alongside each payday, rather than quarterly.

Are there new penalties for failing to meet the Payday Super deadlines?

Under the current legislation, any superannuation not paid by the quarterly due date must be reported and paid to the ATO through a self-assessed Superannuation Guarantee Charge (SGC) statement. Interest and administration charges also apply, together with penalties of up to 200% of the SGC.
Ongoing non-compliance may also result in Director Penalty Notices (DPNs) being issued by the ATO.
From 1 July, under the Payday Super regime, the Superannuation Guarantee Charge will be assessed by the ATO. Interest will compound daily, with penalties of 25% or 50% of the unpaid SGC applying depending on the circumstances.
Director Penalty Notices may still be issued and pursued by the ATO where superannuation obligations remain unpaid.

Is June's superannuation contribution due before 30 June?

No. The June quarter contribution will continue to follow the existing payment timetable and will be submitted once the team has completed the end of financial year reconciliations.

What will happen with employees receiving up to 15 months of superannuation in the 2027 financial year?

The Annual Concessional Cap remains the responsibility of the employee to monitor. Employers should not calculate or provide advice regarding an employee's cap. Employees with concerns should seek independent financial advice.

Australia – Global Insights

Stay up to date with the latest developments in Australian payroll, employment legislation, superannuation, taxation and workforce management by exploring the Australia Global Insights section on the activpayroll website.

Supporting Your Payday Super Transition

With the introduction of Payday Super approaching, now is the time to review your payroll processes, funding arrangements and internal procedures to ensure you're ready for the new requirements. If you have any questions about the changes or how they will be managed by activpayroll, please contact our experts today.

Preparing for Payday Super: Your Questions Answered

Australia – Global Insights

Supporting Your Payday Super Transition

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