Your Payday Super questions, answered

With the July 1, 2026 deadline rapidly approaching, businesses are gearing up for Payday Super to come into effect.

We recently hosted a session with Beam, a super clearing house, on what the legislation looks like in practice, how the ATO are approaching the first year of compliance, and what businesses should be doing now to prepare.

You can watch the full session replay here.

During the 45 minute session, we opened up to questions from the audience. With dozens more that we couldn't get to on the day, we've created this FAQ article getting into the nitty-gritty of the legislation that is still unclear and could expose businesses to legal risk.

These questions and answers were prepared in collaboration with Beam, and are correct as of 18 December 2025.

Is the 7-day period business days or calendar days?

Employers must pay SG contributions at the same time as their employees’ salary and wages.

Super payments must be successfully received in the super fund bank account no later than 7 business days after payday (QE day). There are limited exceptions, including new starters and small or irregular payments.

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When does the 7-business day period start?

E.g. If your payroll cycle ends on Monday 13 July ’26, pay is processed on Tuesday 14 July ‘26, and wages are paid on Wednesday 15 July ‘26, when does the 7-business day statutory timeframe start?

The 7-business day statutory timeframe starts from the day you pay your employees their salary or wages (not the end of the pay period or the date you process payroll). Payday is considered “Day 0” within the 7-business day statutory timeframe.

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If I pay my employees on Wednesday 15 July 2026, when is the latest that a contribution can be allocated into the employee’s account before it is late?

The legislation currently stipulates SG contributions must be received by the fund no later than 7 business days after payday (excluding weekends and public holidays). “Payday” (Qualifying Earnings day) is considered “Day 0” in the statutory timeframe.

Day 0: Wed 15 July - Payday (Qualifying Earnings day)

Day 1: Thu 16 July

Day 2: Fri 17 July

Skip weekend

Day 3: Mon 20 July

Day 4: Tue 21 Jul

Day 5: Wed 22 Jul

Day 6: Thu 23 Jul

Day 7: Fri 24 Jul – Contribution must be successfully received by the super fund by COB on this day.

Where payday is on Wednesday 15 July, the SG contribution must be received by the super fund no later than Friday, 24 July.

Super funds must then allocate (or return contributions if they can’t be allocated) no later than 3 business days after receiving them. In the above example, this would be on Wednesday 15 July.

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What’s changing with super stapling? Can employers still check stapled fund information with the ATO?

Please note that this section of the last has not yet been passed. Refer to the ATO website for employers for the latest information.

The stapling rules don't apply to contributions made under Queensland Government legislative arrangements.  Stapled super fund details | Australian Taxation Office

Offering employees a stapled fund

Now

You must provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don't receive a choice form from an employee.

From 1 July 2026

You can request a stapled super fund and offer this to your employee at the same time you provide their choice form.

You must still provide your employees with a choice of super fund and request stapled super fund details from the ATO if you don't receive a choice form from an employee.

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How will payday super impact 1 April - 30 June ‘26 super payments due on 28 July?

Under payday super legislation, employers must ensure super contribution payments are successfully received in the super fund bank account (and can be allocated by the fund to a member’s account) no later than 7 business days after payday (QE day). If you currently pay super quarterly, the final quarterly SG payment for 1 April - 30 June 2026 will need to be made by 28 July 2026.

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Is the concessional contribution cap threshold for employees changing?

The legislation currently before parliament hasn't indicated a change to the concessional contribution cap threshold. This cap will continue to be used as part of the calculation to determine the maximum contributions base limits.

No specific FY27 “adjustment”.  The cap doesn't change amount, just how it’s monitored. Limits remain based on annual cap, not on a per-pay run or per-quarter basis. Employers must ensure cumulative SG contributions don’t exceed the annual concessional limit over FY27, rather than worrying about each quarter separately.

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Do you think this will result in more employers moving from weekly payroll to fortnightly/monthly pay runs instead?

Payday super is unlikely to force a broad shift to longer payroll cycles. Moves will be case-by-case basis, weighing award requirements, workforce expectations, system capability, and cashflow/admin costs.

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Are there changes happening to the Super Guarantee Max Cap?

The legislation currently before parliament hasn't indicated a change to the concessional contribution cap threshold. This cap will continue to be used as part of the calculation to determine the maximum contributions base limits.

Under payday super, the maximum contributions base (MCB) is moving from a quarterly to an annual cap. If an employer’s payments of qualifying earnings to an employee reaches the MCB during a financial year, the employer can stop paying the minimum SG contributions for the employee for that year.

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If there is a delay getting a payment to the super fund within the statutory timeframe, but the issue is with the clearing house, how can the responsibility fall on the employer?

Under payday super legislation, employers must ensure super contribution payments are successfully received in the super fund bank account (and can be allocated by the fund to a member’s account) no later than 7 business days after payday (QE day). The ATO’s Small Business Superannuation Clearing House will close on 30 June 2026, so employers need to find an alternative, appropriate solution. Those using private clearing houses remain responsible for compliance and should submit payment and contribution data promptly, keeping confirmation records to demonstrate they’ve acted within the required timeframe.

Our clearing house is investing in our operating systems and processes to reduce exception handling and improve straight-through processing, so we can meet our processing allocation (3 business days) under the proposed legislation. Please refer to our Clearing House PDS (Page 6); It advises on current contribution risks for employers, including instances where they provide incorrect information, which can lead to processing issues and delays.

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For a new casual hire, what would the impact be on the 20-business day timeframe if they don't work their first shift until the next month?

Under payday super legislation, employers must collect an employee’s choice of super fund within 20 days of their first day worked. The obligation to pay super begins on the employee’s first payday. For the first contribution for a new employee or a new super fund, employers have up to 20 business days from that first payday to ensure the payment is received by the fund. After this initial contribution, all subsequent payments must be made and received within 7 business days of each payday. If no fund details are provided within the 20-business day window, employers must use their default fund to meet these deadlines.

Please visit the ATO website for more information: Payment deadlines for Payday Super | Australian Taxation Office

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How will the annual super cap interact with businesses that pay a commission structure?

Under payday super legislation, the quarterly maximum contribution base will be replaced by an annual cap. Employers must pay SG on all qualifying earnings, including commissions until the employee’s total earnings reach the annual maximum contribution base. Once that annual cap is reached, no further SG contributions are required for the remainder of the financial year. Each SG payment must still be made no later than 7 business days after payday, unless the cap has already been met.

Please visit the ATO website for more information: Maximum contributions base | Australian Taxation Office

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How do you handle super payments that are a result of off-cycle/out-of-cycle payments? Can payments be made in the next main pay run or QE day?

Under payday super legislation, off-cycle payments are treated as separate paydays. Employers must pay SG on those amounts no later than 7 business days after payday and cannot defer contributions to the next main pay run or rely on QE day.

Please visit the ATO website for more information: Payment deadlines for Payday Super | Australian Taxation Office

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What if you’re employing a working holiday maker who’s awaiting a TFN from the ATO and until they receive one, they don’t have a super fund? Wouldn’t this hold up the process?

Employers can make SG contributions without a TFN. Once an employee obtains one (within 28 days of starting) and provides this to their employer, the employer provides this with their next SG contribution. SG contributions paid without a TFN may be subject to the highest tax.

Under payday super legislation, employers cannot delay SG contributions because a working holiday maker is waiting for a TFN. If the employee has no stapled fund, you must pay contributions into your default fund no later than 7 business days after payday. The fund will hold the account as “TFN pending” until the employee provides it. There are limited scenarios where an employer may have an extended due date to make payment under payday super.

Please visit the ATO website for more information: Payment deadlines for Payday Super | Australian Taxation Office

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For the first contribution for a new employee or super fund, does the 20 business days start from their first pay run?

If you hire a new employee, you’ll have 20 business days (starting from the day after you pay their wages or salary) for their super fund to successfully receive (and be able to allocate to the member’s account) their first super contribution payment.

The extra time to set up correct details for new starters will be a great help for many businesses, particularly those with high employee turnover. Importantly, the legislation currently before parliament proposes a ‘choice loading penalty’ when an employer fails to comply with an employee's choice of fund instructions. The penalty amount is 25% of non-compliant contributions, capped at $1,200 per notice period.

After this initial contribution, employers must ensure all subsequent payments are successfully received in the super fund bank account no later than 7 business days after payday (QE day).

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How does the 20-day rule apply if wages are paid weekly? Would there be potential for continual payments to be rejected?

For weekly pay cycles, the 20-business day rule only applies to the first super contribution for a new employee or new fund, starting from their first payday. After that initial payment, all subsequent contributions must be paid and received by the fund no later than 7 business days after each payday. Employers should avoid delaying the first payment for the full 20 business days, as overlapping pay cycles could cause processing or rejection issues.

Please visit the ATO website for extended information on due dates: Payment deadlines for Payday Super | Australian Taxation Office

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How can Tanda & Beam help your business meet it's Payday Super obligations?

Tanda and Beam work together to give businesses a simple, compliant, and fully integrated pathway to meeting Payday Super requirements. With Tanda’s all-in-one workforce and payroll platform, the entire employee lifecycle sits in one place, from capturing super fund details during onboarding, to calculating super in each pay run, right through to triggering super payments on payday.

Beam, Tanda Payroll’s embedded clearing house, processes super contributions directly from within Tanda, meaning no manual file uploads, no switching between systems, and no additional cost for Tanda Payroll customers. Beam also performs upfront data validation to reduce errors, rejections, and delays, helping employers meet the new seven-business-day payment requirement with confidence.