The Australian Taxation Office (ATO) has identified a ‘superannuation guarantee gap’ where super contributions from employers are received late or not at all. Lower-income earners, women, and casual workers are disproportionately represented in this cohort. Payday super is designed to improve retirement savings and give workers better visibility of their super.

Although most employers pay their super requirements in full by the due date, over $5 billion went unpaid for the financial year ended 2022 (when the ATO made its calculations on late super).

Over the long term, it aims to help employers by further standardising super payment systems.

From 1 July 2026 all employers:

1. must pay their employees’ SG in full and within seven calendar days of paying salary and wages; and

2. must report Ordinary Time Earnings (OTE) and total super liability in Single Touch Payroll (STP), ensuring the SG can be easily identified.

Yes.

The Super Guarantee Charge

The Super Guarantee Charge (SGC) will apply to all missed payments. Employers are currently liable for this charge if they miss their quarterly payments. This charge will apply to all employers who don’t make payment within seven calendar days of salary and wage payments.

The SGC is also being updated so interest is charged to compensate employees for late contributions. The SGC will further increase the longer period an employer delays paying super.

The SGC will be tax-deductible, excluding any penalties and interest after assessment of the SGC by the Australian Taxation Office.

The uplift penalty

Late super payments will also incur an additional ‘uplift penalty’ which will cover the monitoring and compliance costs

From 1 July 2026, all employers must pay eligible employees their super contributions in full and on time to avoid any charges.