By Joshua Occhino, Co-founder, Ezyiah
Short answer: Payday Super has applied since 1 July 2026. Employers must pay super with each pay run, and the contribution must be received by the employee's fund within 7 business days of payday, or 20 business days for a new employee or a new fund. If it arrives late, the ATO assesses a super guarantee charge (SGC) for that payday. The SGC is now tax deductible, except for general interest charge on late SGC payments and late-payment penalties. Penalties are 25% or 50% of unpaid SGC. The ATO's PCG 2026/1 sets a risk-based approach for the first year, to 30 June 2027.
What changed on 1 July 2026?
According to the ATO's about Payday Super page:
- Timing. Super is due each payday, not quarterly. The fund must receive it, with enough information to allocate it, within 7 business days. See payment deadlines for Payday Super.
- New employees or funds. The first contribution for a new employee, or to a new fund, has 20 business days.
- Qualifying earnings. Super is calculated on qualifying earnings, a new base. The super guarantee rate is 12%.
- SBSCH closed. The Small Business Superannuation Clearing House closed to new users on 1 October 2025 and to existing users on 30 June 2026. Employers need a SuperStream-compliant alternative.
How does the new super guarantee charge work?
When super isn't received on time, the ATO assesses the SGC for each payday (QE day). Employers no longer self-assess quarterly. Under the new SGC rules, it is made up of:
- The shortfall. Unpaid super, after late contributions are taken into account.
- Notional earnings. Calculated at the general interest charge rate and compounded daily over the late period.
- Administrative uplift. Starts at 60% of the shortfall plus notional earnings. It's reduced by 20 percentage points if the employer has had no ATO-initiated SGC assessment in the previous two years, and by up to 40 points for a prompt voluntary disclosure, so it can fall to 0%.
- Choice loading. Applies if the choice of fund rules weren't followed: 25%, capped at $1,200 per notice period.
Is the super guarantee charge tax deductible?
Yes, for QE days from 1 July 2026. All components of the SGC you pay are deductible. You can't deduct:
- general interest charge that accrues on a late SGC payment
- late-payment penalties for not paying the SGC
- SGC amounts for quarterly periods before 1 July 2026
What are the penalties now?
From 1 July 2026, penalties are 25% or 50% of the unpaid SGC, depending on prior penalties. Before 1 July 2026, the maximum was 200%.
What is the transition-year approach?
PCG 2026/1 covers 1 July 2026 to 30 June 2027. Employers making genuine efforts to comply, who pay on time and fix errors quickly so their final shortfalls are nil, are treated as low risk. It isn't an amnesty. It rewards effort, not inaction.
What should firms check with employing clients?
- Is their payroll software set up for Payday Super and qualifying earnings?
- Has every client who used the SBSCH moved to another clearing house or payroll-integrated super?
- Are contributions arriving within 7 business days (20 for new employees or funds)? Check a few pay runs against fund receipt dates.
- If a payday was missed, have they paid the shortfall quickly and considered voluntary disclosure to reduce the uplift?
- Does their cash flow suit paying super every pay run instead of quarterly?
How Ezyiah helps
Ezyiah is an AI bookkeeper with its own ledger. It doesn't run payroll or pay super. What it does is reconcile live bank feeds daily, so wages and super payments show up in the books as they happen. That makes it easier for you and your accountant to see whether super is going out every pay run. Your accountant reviews and approves before anything is lodged.
See Ezyiah for business owners and for accounting firms.
Frequently asked questions
How long do employers have to pay super under Payday Super?
The fund must receive it within 7 business days of payday, or 20 business days for a new employee's first contribution or a new fund.
Is the super guarantee charge deductible from 1 July 2026?
Yes. All SGC components for QE days from 1 July 2026 are deductible. GIC on late SGC payment and late-payment penalties are not.
Is the Small Business Superannuation Clearing House still available?
No. It closed to new users on 1 October 2025 and to existing users on 30 June 2026.
What is PCG 2026/1?
The ATO's compliance approach for the first year of Payday Super, 1 July 2026 to 30 June 2027.
