Superannuation in FY27: What's changed and what employers need to do
Superannuation changes in FY27, explained: Payday super, the 12% rate, and what employers need to do.
Chesney McDonald–Small business & finance writer/editor. Read Chesney's full bio
Published Friday 30 October 2026
Table of contents
Key takeaways
- Payday super starts on 1 July 2026, so you pay super at the same time as wages instead of quarterly.
- The super guarantee rate stays at 12%, the final legislated step, with no further rises scheduled.
- The Small Business Superannuation Clearing House has closed, so you need another SuperStream-compliant way to pay super.
- Late super triggers the super guarantee charge, so accurate fund details and on-time payments matter more than before.
Superannuation changes in FY27 at a glance
The superannuation changes in FY27 centre on one big shift: from 1 July 2026, you pay super on each payday rather than every quarter. The super guarantee rate itself holds steady, but the timing, the earnings base, and the way you make payments all change together.
Here's what's different for employers this financial year, which in Australia runs from 1 July 2026 to 30 June 2027:
- Payday super begins on 1 July 2026, replacing quarterly super with a payment on each payday.
- The super guarantee rate holds at 12%, its final legislated level.
- Super is calculated on qualifying earnings, a broader base than ordinary time earnings.
- The Small Business Superannuation Clearing House (SBSCH) has closed, so you need another SuperStream-compliant option.
- Single Touch Payroll reporting now includes your super details with every pay run.
The super guarantee rate in 2026-27
The super guarantee rate for 2026-27 is 12% of an employee's earnings. That's the same rate as last financial year, and it's the last step in a schedule of increases that ran for more than a decade.
The super guarantee percentage is the minimum you must contribute to an eligible employee's super fund on top of their wages. According to the Australian Taxation Office (ATO), no further increases are legislated, so you can plan your payroll around a steady 12%. The change that affects your payroll in FY27 is the timing and the earnings base, not the rate.
Payday super: The biggest change from 1 July 2026
The payday super start date is 1 July 2026. From that date, you pay your employees' super guarantee at the same time as their salary and wages, rather than saving it up for a quarterly payment.
Under the ATO's payment deadlines for payday super, each contribution must reach the employee's super fund within seven business days of payday. A longer window of 20 business days applies to the first contribution for a new employee or into a new fund. The reform gets super into employees' accounts sooner and makes unpaid super easier to spot. Your super details now go to the ATO every pay run through Single Touch Payroll.
The Fair Work Ombudsman also notes that late super can breach an award or enterprise agreement as well as your super obligations. For a quick refresher before your next pay run, read an overview of the payday super changes for employers.
What counts as qualifying earnings
Qualifying earnings is the new base you use to work out super from 1 July 2026, replacing ordinary time earnings. It brings together ordinary time earnings and other payments, such as some commissions and salary-sacrificed contributions. The base is a little broader for some employees. Check how your payroll classifies allowances, loadings, and commissions to make sure super is calculated on the right amount.
The Small Business Superannuation Clearing House has closed
The Small Business Superannuation Clearing House closed permanently on 1 July 2026 as part of the payday super reform. If you used the free ATO service to pay super, you now need a different way to send contributions.
The service stopped accepting new registrations from 1 October 2025, and existing users could make payments until 11:59 pm AEST on 30 June 2026. Super for the quarter ending 30 June 2026 stayed due on 28 July 2026. That final payment couldn't be made through the SBSCH after it closed. The ATO's guidance on moving off the SBSCH covers downloading your records and choosing a replacement.
To keep paying super, you can switch to any SuperStream-compliant option, including:
- payroll software with built-in super payments
- a super fund's own clearing house
- a commercial clearing house service
What employers need to do to stay compliant
The superannuation compliance changes for FY27 come down to a few practical tasks in your payroll. Working through them before your next pay run keeps super flowing on time and avoids surprises. For many small businesses paying staff fortnightly or monthly, super now leaves the account far more often, so cash flow is worth a fresh look.
- Review your pay cycles and cash flow, because super now leaves your account with every pay run rather than once a quarter.
- Choose a SuperStream-compliant payment method to replace the SBSCH, and set it up before your first payday in the new financial year.
- Check that every employee's super fund details are complete and correct, so contributions aren't rejected or delayed.
- Confirm your payroll system calculates super on qualifying earnings and reports it through Single Touch Payroll each payday.
- Run a test pay cycle so you're confident the money reaches each fund within seven business days.
If you'd like even more detail about Payday Super, you can visit this dedicated resource hub.
Penalties for paying super late
Miss the seven-business-day window and the super guarantee charge (SGC) applies. It replaces your original super obligation and costs more than the super you would have paid on time.
The SGC is the total of the unpaid super, interest, and an administrative uplift. For paydays from 1 July 2026, the ATO works out the charge from your Single Touch Payroll and fund data and sends you an assessment. You no longer lodge a super guarantee statement. Making a voluntary disclosure before the ATO assesses you can reduce the administrative uplift, so it pays to act quickly if you spot a shortfall.
Two things are worth knowing about the reformed charge. The SGC itself is now tax-deductible for paydays from 1 July 2026. That deduction wasn't available under the old quarterly system.
The ATO is also taking a risk-based approach for the first year of payday super. That period runs from 1 July 2026 to 30 June 2027, under its compliance guideline PCG 2026/1. The focus is on employers who don't make a genuine effort, rather than those trying to pay on time and fix errors fast.
Stay on top of payday super with Xero
Payday super adds more moving parts to every pay run, so having super, payroll, and reporting in one place takes the pressure off. Xero's payroll software calculates super on qualifying earnings, pays it through a SuperStream-compliant channel, and keeps your Single Touch Payroll reporting current each pay run. That means less manual admin and more confidence that contributions reach each fund inside the seven-business-day window.
Want a hand getting on top of payday super and staying there? Get one month free.
FAQs on superannuation changes in FY27
Here are quick answers to common questions about the superannuation changes in FY27.
Is the super guarantee rate going up after 12%?
No further increase is legislated, so the super guarantee percentage is expected to stay at 12%. Any future change would need new legislation.
What are qualifying earnings?
Qualifying earnings is the base for calculating super from 1 July 2026, combining ordinary time earnings with some other payments. It can be slightly broader than the old ordinary time earnings base for certain employees.
What happened to the Small Business Superannuation Clearing House?
It closed permanently on 1 July 2026, so it can no longer be used to pay super or download records. Employers now use payroll software with super, a fund's clearing house, or a commercial clearing house instead.
Do you need to pay super for contractors?
You keep paying super for eligible workers, which can include contractors paid mainly for their labour. Check each arrangement against the ATO's definition so no one is missed.
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