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Your Path To Payroll Confidence

Stop risking severe financial penalties and underpayment claims by staying current on complex Australian payroll law changes. This webinar covers the new Payday Super rules and how to achieve legally compliant termination payouts every time.

Master Payday Super

Prepare for the transition to Payday Super from July 2026, ensuring system and cashflow readiness while covering essential compliance and penalties.

Gain confidence in termination complaince

The session will cover Procedural Fairness and Unfair Dismissal risks, as well as Final Payments checklists, tax treatment and documentation requirements.

Frequently asked questions in the Payday Super webinar

Below are questions asked during the webinar that Glynn addressed or has since addressed.

Payday Super timing rules

Could you please confirm when the 7-day period starts — pay date or EFT release date?

7 business days after the QE day (when the employee physically receives the money). The countdown does not include the day they are paid (received their wages/salary).

If payday is the 15th but you pay staff a day or two earlier to ensure funds are received by the 15th, does the 7 days start from the 15th or the 13th?

The 7 days start from the day the person physically receives payment.

What is the super treatment for corrective payments (backpays, amendments)?

For continuing employees, the super obligation for off-cycle corrective payments rolls into the next normal pay run. For terminated employees, the normal 7-business-day rule applies from the date they are paid.

For a corrective payment, is it 7 business days from the next cycle or from the date the corrective pay is made?

7 business days from the next normal pay cycle for that individual.

Can additional super beyond 12% be paid quarterly as it’s not part of Payday Super?

Yes, additional super can be paid quarterly as SG law is not concerned with amounts above the 12% obligation. Please note that an Award, EBA or employment contract may provide for more timely payments though.

Will the March–June 2026 quarter super still be due on 28 July?

Yes, but for the 30 June quarter specifically, any shortfalls must now go to the ATO, not directly to the fund.

MVR/MRR & error reduction

How will MVR/MRR work with Self-Managed Super Funds (SMSFs)?

The MVR response also applies to SMSFs. However, comments by the ATO subsequent to the session indicate that not all software/clearing houses and funds will be ready for this. Please see above for the additional post session information.

Super funds often amalgamate and that’s how we get bounce-backs.

The 20-business-day rule should apply in the event of bounce-backs due to fund amalgamations. We hope that the ATO will confirm what to do, especially if there is any embargo on receiving contributions for an extended period.

What happens if you don’t get a reply for MVR/MRR within 24 hours?

As mentioned above, there may be delays in some funds having this capability. If no reply is received or it bounces back all we can do is continue as currently and assume the details provided are correct.

What happens in the event of fund mergers/shutdown periods? Is there leeway on delaying payment? Is an MVR required when the fund is back online?

There is no guidance on fund mergers/shutdowns in the new legislation. The ATO has not made any comments yet. Glynn will see if he can get this passed on to the ATO working group to consider and respond.

Isn’t MVR in phase 3 of Payday Super?

MVR was originally stated as mandatory from 1 July 2026 as part of the core Payday Super rollout for employers but you are correct that Funds can have until February 2027 to be compliant and employers will also have more time. Please see the post session information above.

Stapled funds

Where a stapled fund is a non-compliant SMSF unable to accept contributions, are there alternatives other than the default fund?

The employee can, of course, choose another fund, but if they don’t, then the default fund would be used.

Can you find stapled fund information for a terminated employee?

There is no specific guidance on this area. Glynn thinks that an employer could still have access to this information from the ATO. Although it will probably show the fund that you were previously contributing to. If that is the fund that bounced then check with the former employee to choose a new fund or the default fund will be the final solution.

Qualifying earnings & payment types

Does QE include broken shift allowances and on-call allowances?

On-call allowances depend on whether they are for ordinary hours (included) or availability outside ordinary hours (excluded). As an example, an on call allowance should not be QE if it’s paid to an IT worker who is on call say one night a week and that period is outside of their ordinary hours.

Broken shift allowances. An allowance paid for the inconvenience of having an unpaid break between the two working periods should be QE as it is not paid for work outside of ordinary hours.

Will Payday Super apply to sole traders/contractors classified as “deemed employees”? Does invoice payment date trigger the 7-day countdown?

No, it should be considered drawings and should not be subject to SG law.

ATO said if we pay the same vehicle allowance each pay, SGC is payable if they can’t prove it was used for expenses. Should we pay super on all of it?

Depends on the nature: Cents per kilometre is not superable if for deductible work use of an employee’s car. A flat car allowance may be superable unless the employer determines it is fully expended earning taxable income.

Are board of directors considered contractors to be included as QE payments?

Yes. Directors contracted as individuals would be included and their fees are qualifying earnings subject to the 7-day rule.

Subcontracted gardening services — sole traders, but work could be done by a team. Do we need to pay super?

Generally no, if the contract allows for delegation (a payment for a “given result” ) then unlikely super applies. Advice should be sought on the actual facts.

If we use a sole trader singer/artist/speaker for events, should we pay super on top of the invoice?

If engaged as an individual who cannot delegate, there could be a super obligation. If the contract does not mention super, then likely on top of the invoice on the GST exclusive payment to them. Please see professional advice.

What is FAQ?

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Super cap & higher earners

What about those on capped super currently paid $30k in instalments who don’t get super on bonuses? Do you move to 12% including on bonuses and stop at the cap?

Yes. Employers pay 12% on all qualifying earnings (including bonuses) until the annual cap (expected $32,500) is reached, at which point the SG obligation ceases for that income year. Depending on how you set this up, you will need to consider the change in cash salary this will cause (for those on a total package) as the super component no longer applies.

If June 2026 super is paid in July 2027, will it count toward the annual cap of $32,500?

The cap for the individual is based on when the fund physically receives the money, meaning June wages super received in July counts toward the new income year’s cap for the individual’s concessional limit. However if it relates to earnings paid pre 1 July 2026 then it can count towards the employer’s super obligation for 2025-2026.

Can you explain again about higher income reaching $32,500?

Once cumulative SG contributions for QE paid in 2026-2027 reach the $32,500 cap, the SG obligation ceases, and the employee receives the full package amount as a cash-only salary. This assumes that they are on a total package inclusive of super. If Award or EBA driven then usually super is in addition to the wages/salary. In these cases, the employee may just continue to receive the cash wages/salary without any additional amount for the super now not due. It is important to check what the contract or Award/EBA states.

What if a higher earner changes employer mid-year and has already capped out?

The individual can get an exemption certificate from the ATO, which instructs the new employer to stop paying super. This is for them to organise. Currently this would only be granted where they had two employers at the same time. This will no longer be the case from 1 July 2026.

Does this mean employers don’t need to contribute if employee reaches $32,500? How is the annual year defined?

Once $32,500 (subject to confirmation) in SG contributions is paid, no further SG obligation exists. The annual year is the financial year (1 July – 30 June). So it looks at the super on earnings paid in that FY. Contractually they may be required to provide more.

What if the employer pays super beyond the $30,000 cap due to bonuses?

Normal wages and bonuses should both count towards the limit. It may be worthwhile considering a policy of converting any excess super to cash salary once the limit (expected to be $32,500 for FY 2026-2027) is reached. This assumes they are on a total package including super. Staff on a salary plus super arrangement e.g. Award based may no longer receive super contributions depending on how the Aard super clause is drafted.

Has the ATO formally announced $32,500 as the MCB cap for FY27?

No, the $32,500 figure has not been officially confirmed by the ATO.

International / Cross-border

How does this apply to an Australian company paying overseas employees, or an overseas entity paying an Australian contractor via ABN?

AU company paying non-residents overseas generally has no AU super obligation. Overseas company engaging contractors in Australia should seek specialist advice. The same rules though, should apply as they would to an Australian based organisation for super-eligible contractors.

Employees in SE Asia, we pay fixed super to their AU fund. How is this treated if no qualifying earnings in AU?

If they are not residents of Australia and work only overseas then there should not be super obligations in Australia. Seek professional advice.

Australian resident working in NZ, paid in NZ, super paid under AU legislation. Still have 7 days from pay date?

If the person remains subject to Australian SG law, the 7-day rule should apply from the date they receive qualifying earnings.

Contractors & structure

Any super liability risk with a Pty Ltd contractor where only one person always does the work?

If the contract is with the company, there should be no super obligation (assuming it is not a sham arrangement).

Public holidays & business days

Melbourne Cup is not statewide, only Melbourne Metro. Does this still apply?

The law is as follows:
business day means a day other than:
(a) a Saturday or a Sunday; or
(b) a day which is a public holiday for the whole of:
(i) any State; or
(ii) the Australian Capital Territory; or
(iii) the Northern Territory.

For more information on public holidays in Victoria (for example, regional holidays), go to Business Victoria or call 13 22 15.

What about regional holidays?

Agree. The legislation refers to public holidays for the whole of the State or Territory. Regional holidays that are not statewide would not count.

Terminations & Super

What happens if an employee is terminated suddenly and overpaid, they repay some earnings — what happens to the super that was overpaid?

The employer may be able to recover from the Fund. A prompt request is recommended. Otherwise I don’t expect it to be recoverable from the individual. Legal advice recommended. This could be an issue with monthly paid staff paid on the 15^th but then leaving prior to month’s end.

Can an employee salary sacrifice their payment in lieu of notice?

No, as it is an ETP it must be paid to the employee.

Fund processing & clearinghouses

How many days does it take for funds to receive contributions?

If the New Payments Platform (NPP) is used which is supposed to be mandatory, funds should receive contributions the same day. This assumes the clearing house or employer is also using NPP.

If MRR is not accepted by the choice fund, does the employer need to register as an employer for that fund?

MRR applies to the default fund the employer uses. MVR applies to any other funds. If an MVR is lodged and the fund cannot accept contributions for that person , then check for a stapled fund and lodge an MVR with that fund. If the stapled fund cannot accept contributions or there is no stapled fund, lodge an MRR to inform your default fund of the new member.