As you may be aware, the Federal Government is introducing “Payday Super” reforms, which are expected to commence from 1 July 2026. These changes will significantly alter how and when superannuation contributions are processed and reported.
To help ensure compliance and minimise issues moving forward, we would like to highlight some of the key changes and requirements schools will need to be aware of.
Key Changes Under Payday Super
- Payment on Payday: Superannuation contributions will need to be paid at the same time as employee wages, rather than monthly or quarterly.
- 7-Day Rule: Contributions must generally reach and be successfully allocated by the employee’s super fund within 7 business days of the payday.
- New employees must provide correct superannuation details as soon as possible before commencement, including:
- Tax File Number (TFN)
- Super fund details
- Choice of super form (if applicable)
Qualifying earnings are the types of employee earnings that superannuation must be calculated on.
Qualifying earnings generally includes:
- Base salary and wages
- Ordinary Time Earnings (OTE)
- Allowances that relate to ordinary hours
- Paid leave such as annual, personal and long service leave
- Some bonuses and commissions
Qualifying earnings generally do not include:
- Overtime payments worked outside ordinary hours
- Reimbursements
- Certain termination payments
To help ensure a smooth transition, we recommend schools
- Submit payroll information on time
- Ensure all new starter documentation is completed promptly
- Notify payroll immediately of staffing or pay changes
- Review current payroll and onboarding processes for accuracy and timeliness
If you would like support with implementing these changes, or would like further information on our outsourced payroll services, contact our payroll team.
