Payday super started on 1 July 2026. Employers must now pay superannuation at the same time as salary and wages instead of quarterly, and contributions must be received by the employee's super fund within 7 business days after payday.
The change also introduced a new term, qualifying earnings, which replaces the quarterly ordinary time earnings calculation. For most employers the amount of super does not change, but the rules about which leave payments attract super are worth reading carefully, because unused leave paid out when you leave a job does not attract any super at all.
What changed
Until 30 June 2026, employers paid super at least quarterly, calculated on ordinary time earnings. From 1 July 2026 they pay it on each payday, calculated as 12% of qualifying earnings for that pay period. The maximum contribution base also changed shape: it used to be a quarterly earnings figure, and it is now an annual one.
| Measure | Up to 30 June 2026 | From 1 July 2026 |
|---|---|---|
| Payment frequency | At least quarterly | Each payday |
| Calculated on | Ordinary time earnings | Qualifying earnings |
| Super guarantee rate | 12% | 12% |
| Maximum contribution base | $62,500 per quarter (2025-26) | $270,830 per year (2026-27) |
The 7 business day deadline
The deadline is about when the money arrives at the fund, not when the employer sends it. Super guarantee contributions must be received by the employee's fund within 7 business days after paying qualifying earnings. Two exceptions have longer windows:
- A new employee or a new fund. The first contribution is due 20 business days after the first qualifying earnings day. The ATO's own example: a first payment on 9 July 2026 has a due date of 7 August 2026.
- Out-of-cycle payments. If a payment falls outside the regular payday, the contribution is due within 7 business days after the next regular, non-out-of-cycle payment.
ATO, Payment deadlines for Payday Super and ATO, Super guarantee (last updated 17 April 2026). Verified 26 July 2026.
Qualifying earnings, in plain terms
Qualifying earnings is the new base for the calculation. The ATO is explicit that for most employers it changes nothing: the 12% rate is unchanged, and every payment that counted as ordinary time earnings up to 30 June 2026 continues to count. The only additional payment type is commissions for work done entirely outside ordinary hours, which were previously excluded and are now included.
Overtime is still excluded, provided your ordinary hours are clearly identified in an award or agreement. If overtime cannot be distinctly identified, all hours worked are treated as ordinary hours and attract super.
Which leave payments attract super
This is where it matters for anyone tracking a leave balance. Paid leave you take during employment is generally qualifying earnings and attracts super. Leave paid out when you leave generally does not.
| Payment | Super payable? |
|---|---|
| Annual leave taken during employment | Yes |
| Annual leave loading (general) | Yes |
| Annual leave loading clearly linked to lost opportunity to work overtime | No |
| Sick, personal and carer's leave | Yes |
| Long service leave (not under a portable scheme) | Yes |
| Long service leave paid by a portable scheme administrator | No |
| Family and domestic violence leave | Yes |
| RDOs and time off in lieu taken at ordinary rates | Yes |
| Gardening leave | Yes |
| Cashed-out annual, long service or personal leave while still employed | Yes |
| Community service leave, jury duty leave, defence reserve leave | No |
| Employer-funded and government paid parental leave | No |
The annual leave loading line is the classic trap. Loading is qualifying earnings unless it is clearly linked to a lost opportunity to work overtime, in which case it is not. The distinction turns on what your award or agreement actually says the loading is for.
Termination payments are mostly excluded
When employment ends, most of what you are paid carries no super. The important exception is payment in lieu of notice, which is qualifying earnings for all termination reasons.
| Termination payment | Super payable? |
|---|---|
| Payment in lieu of notice | Yes |
| Unused annual leave, leave loading and long service leave | No |
| Unused personal or carer's leave | No |
| Unused RDOs and time off in lieu | No |
| Redundancy pay, severance, golden handshakes | No |
The ATO notes these apply regardless of the reason for termination or how the payment is taxed. For the tax side of the same payments, see annual leave payout tax and redundancy tax.
A worked example
The ATO's own example: Michael is made genuinely redundant and paid $40,000 on 14 October 2026, made up of $10,000 payment in lieu of notice, $25,000 redundancy pay and a $5,000 ex gratia payment.
Only the $10,000 payment in lieu of notice is qualifying earnings.
Super payable = $10,000 × 12% = $1,200. The redundancy pay and the ex gratia payment attract nothing.
Common questions
Does payday super mean I get more super?
Not directly. The rate is unchanged at 12%. You get it sooner and more often, which means it starts earning investment returns earlier, and underpayments are easier to spot.
Do I get super on my unused annual leave payout?
No. Unused annual leave, leave loading and long service leave paid on termination are not qualifying earnings, regardless of why you left.
Is super paid on payment in lieu of notice?
Yes. It is qualifying earnings for all termination reasons, which makes it the main super-attracting component of most final pays. See payment in lieu of notice.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.