From 1 July 2026, the way employers calculate and pay Superannuation Guarantee (SGC) will change. The ATO is shifting to a “paid‑basis” rule, meaning super will be based on when wages are actually paid, not when they are earned.
This is a significant update for small businesses, bookkeepers, and payroll managers — and it will affect how you plan cashflow, run payroll, and meet your quarterly super deadlines.
What’s Changing?
Old Rule (until 30 June 2026)
Super is calculated on earnings in the quarter,
even if the wages are paid later.
New Rule (from 1 July 2026)
Super is calculated based on the date the employee is paid.
This means:
- If you pay wages on or after 1 July 2026, those wages fall under the new rules
- Even if the work was performed in June, the super belongs to the July–September 2026 quarter
- Why the Change?
- The ATO is aligning super with Single Touch Payroll (STP) reporting. STP reports wages on the payment date, so super will now follow the same timing.
- This reduces confusion, improves compliance, and makes it harder for employers to delay super.
- What Employers Need to Watch
- 1. End‑of‑financial‑year payroll timing
- If you normally pay late‑June wages in early July, those wages will now count toward the September quarter super.
- This may shift your cashflow obligations.
- 2. Quarterly super deadlines remain the same
- Super is still due 28 days after the end of each quarter.
3. Late super = penalties
The ATO will continue to apply the Super Guarantee Charge (SGC) for late payments, which includes:
- Interest
- Administration fees
- Loss of tax deduction
The new rules won’t change the penalty system — if anything, they make timing more important.
Practical Example
Scenario: An employee works 24–30 June 2026. You pay them on 3 July 2026.
Under the new rules:
- These wages belong to the July–September 2026 quarter
- Super is payable by 28 October 2026
- Even though the work was done in June, the payment date controls the super quarter.
- What You Should Do Now
- ✔ Review your payroll cycle
- If you pay weekly or fortnightly, check whether your first July pay run will shift super into the next quarter.
- ✔ Update your cashflow planning
- Super obligations may move depending on your pay dates.
- ✔ Ensure your payroll software is updated
- Xero, MYOB, and QuickBooks will adjust automatically — but it’s worth confirming.
- ✔ Communicate with employees
- Some staff may notice timing differences in their super contributions.
- ✔ Update your cashflow planning
- Super obligations may move depending on your pay dates.