Payday Super
FUND DETAILS USI: NES0100AU ABN: 72 229 227 691 ADDITIONAL INFORMATION
What is Payday Super?
Payday Super is a government reform designed to improve retirement outcomes for Australian workers by making super payments more frequent and on time. It aims to help the Australian Taxation Office (ATO) identify and recover unpaid super more quickly and make it easier for employees to see when their super has been paid.
From 1 July 2026, due to new legislation, you’ll need to pay your employees’ super at the same time as their salary and wages.
What is changing?
Under the legislation, you must pay super to your employees’ super funds at the same time as their salary and wages (also known as their qualifying earnings or QE).
This means:
- the minimum frequency for super payments will increase from four times a year (quarterly) to every pay cycle
- each time you pay qualifying earnings, you’ll have seven (7) business days for the super contribution to be received in your employee’s chosen fund.
For missed, late, or underpaid super contributions, updated penalties and charges will apply. These include late payment penalties, interest on shortfalls and additional penalties for repeat offenders.
Different payment timeframes may apply in limited situations, including:
- up to 20 business days from payday to make the first contributions for new employees, employees who have changed fund or employees who have recommenced employment
- extended timeframes for certain out of cycle payments, such as bonuses or commission.
Prepare for the change
The Payday Super legislation has been passed by Parliament and will commence on 1 July 2026.
Here are some practical steps you can take to prepare for the upcoming changes.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Make sure you are clear in your organisation who is responsible for keeping on top of the Payday Super requirements and that they are getting the support they need.
Assign clear ownership for each step and keep your internal documentation up to date.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Set up your payroll system so it’s ready to process super payments in line with your pay cycles. You can even start trialling this approach now. We recommend you also contact your payroll provider about this.
Ensure your Single Touch Payroll (STP) can report both qualified earnings and total super liability for each employee every pay cycle. This helps the ATO match payments to obligations, helping you stay compliant.
If you use the ATO’s Small Business Superannuation Clearing House (SBSCH), it closes on 1 July 2026. Please contact our Employer Services Manager, Calvin Lake at calvin.lake@nesssuper.com.au or call 0436 000 401 to discuss our clearing house solution.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Review how more frequent super payments could affect your cash flow and ensure your sign-off procedures are ready for tighter timeframes.
Talk to your finance team or accountant about how they would handle any additional costs, including notional interest or penalties, if a super payment is made late.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Under Payday Super, the tight timeframes may require a change in your payroll processes. You will need to act on errors and refunds promptly, as waiting until the next pay cycle could result in penalties.
Train staff and check they have the access they need, so key responsibilities are covered during absences.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Make sure that your super payments will reach employees’ funds within seven (7) business days of payday. If you currently use direct debit, consider switching to a faster method such as Electronic Funds Transfer (EFT), or New Payments Platform (NPP).
Under the proposed reforms, NPP will be a valid payment option, and super funds and clearing houses will be required to accept these payments.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Regularly check that your payroll data is accurate, including each employee’s super fund details. Work with your super fund and your employees to keep the information current and resolve data errors early.
With tighter timelines, you’ll have less time to fix errors after payday. Delays could result in missed deadlines and penalties. Stay ahead by ensuring your data is accurate from the start.
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
For new hires, you’ll have 20 business days from their first payday to make their first super contribution (instead of seven (7) business days).
Paul Lahiff
Chairman and Independent Director
Paul was appointed Chairman of the Board of NESS Super on 20 May 2021 and was appointed to the Board as an Independent Director on 21 March 2019.
Paul holds a BSc from Sydney University. Paul runs his own consultancy business specialising in strategy formulation, executive coaching & mentoring and Board governance. Paul has almost forty years' experience in banking and finance, with previous roles as Chair of NPP Australia Limited, Managing Director roles with Mortgage Choice, Permanent Trustee and Heritage Building Society. Paul has held senior executive roles with Westpac in Sydney and London. Paul has also served on the boards of Sunsuper, Cancer Council NSW, House With No Steps and Thorn Group.
Current Directorships / Appointments:
- Chairman and Independent Director of NESS Super Pty Ltd
- Chair of the Advanced Encryption Standard Steering Committee
- Chair of ISO20022 Migration Steering Committee
- Chair of Clime Investment Management Limited
- Director of Harmoney Corp Limited
- Director & Secretary of Lahiff Consulting Pty Ltd
- Director & Secretary of P & R Lahiff Pty Ltd
- Director & Secretary of RSW Lane Cove Pty Ltd
- Non-Executive Director of Defence Bank
Download this checklist to help you prepare for the upcoming changes.
More Support
Let us support you.
For more information about support, please email our Employer Services Manager, Calvin Lake at calvin.lake@nesssuper.com.au or call 0436 000 401.
FAQs
Why is the government introducing Payday Super?
Employees will benefit from increased retirement savings through more frequent and timely superannuation contributions made throughout their careers. The reforms also aim to strengthen the ability to detect and address unpaid Superannuation Guarantee (SG) contributions earlier.
Employers will experience more streamlined payroll operations, with SG contributions becoming more closely aligned with salary and wage payments. In cases of SG shortfalls, employers will have greater flexibility to self-correct. Making smaller, more regular payments—combined with earlier intervention—can help prevent the accumulation of large SG liabilities.
How will the ATO administer the new changes?
The ATO has published draft guidance on their proposed compliance approach for the first year of Payday Super. This draft guidance suggests that the ATO does not intend to apply compliance resources to investigate employers that are considered low-risk. Generally, low- risk employers are those who have attempted to meet the new payment time frames, but contributions were not received by the super fund on time and are instead allocated as soon as reasonably practicable. According to the draft guidelines, medium or high-risk employers may still be subject to ATO investigation during the first year of Payday Super.
Please refer to the ATO’s Draft Practical Compliance Guide PCG 2025/D5 for their proposed first year compliance approach.
How long does a super fund have to refund contributions to an employer?
All super funds must return any payments which are unable to be allocated within three (3) business days.~
~This timeframe is subject to the registration of regulations by Government.
When does the employer’s deadline for making contribution payments begin and end?
Generally, employers have up to seven (7) business days after payday for the contributions data and the corresponding payment to be received by their employees’ super fund. The clock stops once all required information to process and allocate the contribution is received by the super fund.
Whose responsibility is it if the employer’s contribution is delayed and does not reach the destination fund bank account within seven (7) business days?
It is the responsibility of the employer to ensure the funds and data are received by the super fund within the required timeframe (usually seven (7) business days). The legislation makes certain allowances for exceptional circumstances, (for example, natural disasters impacting the ability to make SG contributions on time). The initial contribution for new employees, is also subject to an extended contribution time limit. In most circumstances however, employers can be expected to be liable for SG contribution if they do not make the seven (7) business day timeframe, including delays due to rejected funds that need to be re-contributed. For this reason, employers are strongly encouraged to make a habit of making their super contributions on or before QE day to limit the impact of potential system delays exposing them to penalties.
Will the employee be notified if their super does not arrive in their super fund?
Members are encouraged to utilise online accounts and apps to confirm their super has been received by the fund. There is no legal obligation for the fund to communicate with a member if the employee’s superannuation funds have not been received.
What is the treatment of different payment types?
Leave loading: Super on leave loading must also be paid within seven (7 business days of payday.
Salary sacrifice: Salary sacrifice super contributions must be received by the employee’s super fund within seven (7) business days of payday.
Contractors: Contractors (who are considered employees for super purposes), casual, and seasonal employees must have their super paid within seven (7) business days of payday.
Out of cycle commissions, bonuses, payments in advance and back payments: Different payments periods can apply to payments that are determined to be out-of-cycle. Super on these payments can be paid on the next QE day, with funds paid to the employee’s nominated super fund within seven (7) business days. However, if there are no further QE days, this extension does not apply.
What is Qualifying Earnings (QE)?
QE is a new term which includes ordinary time earnings, salary sacrifice contributions, and other amounts paid to extended definition employees.
How will the ATO know if a contribution is late?
Through the matching of Single Touch Payroll (STP) reporting and Member Account Transaction Service (MATS) data submitted by super funds. Employers must ensure the super liability is correct and submitted in real time.
What happens if contributions are late or rejected?
There are a number of potential consequences if contributions are not paid on time, including:
- SG contribution, which consists of:
- Individual final SG shortfall
- Notional earnings (General Interest Charge (GIC) accrue daily)
- Up to 60% administrative uplift penalty on SG shortfall
- Choice loading (if an employer does not comply with the choice of fund rules).
- Non-compliance reporting to the ATO
- Late payment penalties and GIC (if SGC liability is not paid in full)
- Repeat offender penalties (up to 50%)
The ATO has advised that they are planning to release additional information for employers about how this will apply.
Do employers need a catch-up file for refund payments?
Super funds will have three (3) business days to allocate funds or refund the contributions.~ Employers will need to reprocess those contributions in a timely manner (potentially as a catch-up file) as their seven (7) business day deadline commences on the relevant QE day. There is no additional time allowed to address errors if a contribution has been rejected.
~This timeframe is subject to the registration of regulations by Government.
How can employers reduce the risk of refunds or errors?
- Correct errors at the source
- Ensure member data is accurate (TFN, DOB, name)
- Validate contributions data prior to submission
- Validate super fund details during onboarding and supply correct Payment Reference Number (PRN) on payments
Are there exceptions for new employees?
Employers will have an extended period of time to make contributions to new employees. They will have a deadline of 20 (twenty) business days from the first QE day to make the first SG contribution for a new employee.
Are there proposed changes for onboarding?
Employers can request an employee’s stapled super fund details from the ATO before, during, or after onboarding.# This helps employees to make informed fund choices and avoid multiple accounts.
#This is subject to the passing of legislation.