Who must pay superannuation on every payday (Payday Super)?
The applicability test for Pay superannuation on every payday (Payday Super) (ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has employees.
What the obligation is
From 1 July 2026, super must reach the employee's fund within 7 business days of each payday.
Payday Super replaces quarterly SG contributions. Employers must pay super on every payday at the qualifying earnings (QE) rate of 12%, with contributions reaching the fund within 7 business days. STP reports new QE and Super Liability fields. ATO cross-matches STP data against fund receipts in near real-time. The Small Business Super Clearing House closes 1 October 2025 (no new users) and decommissions fully on 1 July 2026.
The applicability test
Applies when the business has employees.
How the regulator frames it: All employers in Australia.
What triggers it: Paying an employee.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).
The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".
| Size band | Answer across all industries, any structure |
|---|---|
| No employees (turnover $100K–$1M) | No |
| 1–5 employees (turnover $100K–$1M) | Yes |
| 6–19 employees (turnover $1M–$3M) | Yes |
| 20–99 employees (turnover $3M–$10M) | Yes |
| 100–499 employees (turnover $10M–$100M) | Yes |
| 500+ employees (turnover $100M–$1B) | Yes |
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. You have employees (6–19)
- Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires employees.
What you must do, and when
- When due
- Super contributions within 7 business days of each payday from 1 July 2026.
- Frequency
- Ongoing
- Evidence to keep
- STP submissions with QE/Super Liability fields, fund receipt confirmations, payroll system audit trail.
- In force from
- 1 July 2026
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: SGC interest at 10.38% p.a. (daily compounding), admin uplift up to 60%, additional penalty up to 200% of SGC. Not tax-deductible.
Audit or assurance level
Self-assessment. Authority: Superannuation Guarantee (Administration) Act 1992 (as amended by Payday Super); ATO 'About Payday Super'.
Frequency: Payday Super: contributions must reach the fund within 7 business days of each payday (from 1 Jul 2026). Payroll tax: monthly or annual state and territory returns.
Who can perform it: The employer self-assesses. No mandated independent audit; the ATO and state revenue offices audit at their discretion, so your payroll records are the evidence.
Dates in the compliance calendar
- Payday Super commences: 1 July 2026 (one-off). Super contributions must reach the employee's fund within 7 business days of each payday. New STP fields (QE + Super Liability).
- Payday Super commencement: 1 July 2026 (one-off). SG payable within 7 days of pay (replacing quarterly). 11.5%→12% SG rate from 1 Jul 2025; QE base from 1 Jul 2026.
Enforcement examples
- FWO investigation — Commonwealth Bank (super underpayment) (2024): OTE definitions for super calculations must be audited annually — allowances, leave loading, and bonuses are common sources of underpayment.
- ATO superannuation guarantee enforcement — major employers (2024): STP data + ATO recovery action is automated end-to-end. Pre-Payday Super, late or missed super is detected within days.
- ATO Superannuation Guarantee Charge — TPG Telecom Limited (Vodafone underpayment) (2022): Payroll system mappings of OTE to SG calculations must be reviewed annually — especially around bonuses, allowances and leave loading.
Obligations with the same applicability test
If this obligation applies to you, so do these 11: the engine uses the same rule for each.
- Report under Single Touch Payroll Phase 2
- Pay employees in accordance with the applicable modern award
- Honour employees' right to disconnect (s 333M)
- Verify work rights via VEVO before employment
- Comply with Paid Parental Leave scheme (26 weeks by 1 July 2026)
- Pay annual leave loading where the award or contract provides
- Provide 10 days personal/carer's leave per NES
- Provide 10 days paid family + domestic violence leave (FDV)
- Document VEVO checks + retain employer records (s 245AYL Migration Act)
- Provide minimum notice of termination (NES s 117)
- Right to Disconnect (s 333M FWA)
Where it sits in the corpus
Rules Mate tracks 9 published obligations tagged "super", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 2 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Taxation Office.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
SGAA: Federal Superannuation Guarantee regime.
Free tools that help with this obligation:
Questions
- Who must pay superannuation on every payday (Payday Super)?
- Applies when the business has employees.
- Do sole traders need to pay superannuation on every payday (Payday Super)?
- Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
- Do businesses with 1–5 employees need to pay superannuation on every payday (Payday Super)?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Pay superannuation on every payday (Payday Super)" due?
- Super contributions within 7 business days of each payday from 1 July 2026.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.