{"id":301749,"date":"2026-03-03T14:56:32","date_gmt":"2026-03-03T02:56:32","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=301749"},"modified":"2026-03-12T14:36:04","modified_gmt":"2026-03-12T02:36:04","slug":"compliance-extensions-penalties","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/payday-super\/compliance-extensions-penalties\/","title":{"rendered":"Payday Super: Compliance, extensions, and penalties"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Body” _builder_version=”4.27.6″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]Payday Super changes how you pay superannuation contributions to your employees. Under the new law, superannuation guarantee (SG) contributions must be paid into an employee’s super fund within 7 business days of the employee’s salary and wages being paid.<\/p>\n

The change also brings new compliance rules, extensions, and penalties for non-compliance. Businesses need to be aware of these changes to avoid non-compliance and a fine from the ATO.<\/p>\n

Payday Super Compliance Rules<\/h2>\n

To comply with the new laws, there are a few facts you need to be aware of.<\/p>\n

Explaining what Qualifying Earnings are for businesses<\/h3>\n

Your employees\u2019 superannuation guarantee contributions need to be in their super fund within 7 business days of qualifying earnings (QE). QE events are the dates on which you pay salary and wages for work performed by your employees. It’s what the workers earn on the job, and the QE event is when you pay them either weekly, fortnightly, or monthly.<\/p>\n

To put this in perspective:<\/strong> An employer pays their employees fortnightly. The next date on which they pay salary and wages (QE event) is the 1st April 2026. Under Payday Super rules, the SG contribution calculated on the employees’ QE is due into their super funds by the 10th April (7 business days later).<\/p>\n

What needs to be reported<\/h3>\n

In addition to what is already reported in single touch payroll<\/a> (STP), the ATO needs businesses to report qualifying earnings and superannuation liabilities. The super liability is the owed super calculated based on QE.<\/p>\n

If you do not report these amounts in your STP submissions, you do not comply with the Payday Super law. To do this, you need payroll software<\/a> that can report these amounts accurately in your STP submissions.<\/p>\n

How to stay compliant with your SG contributions<\/h3>\n

Businesses need payroll software that can report QE and the SG contribution liability payments. They will also need a super clearing house<\/a> (SCH) to distribute SG payments to their employees\u2019 nominated super funds.<\/p>\n

You can\u2019t just pay the contribution directly into a super fund: this is where a super clearing house keeps you compliant by transmitting SuperStream data (super fund information and the SG payment) to the designated super fund.<\/p>\n

If there is a mistake with an SG contribution, the super fund provider you sent the payment to has 3 business days<\/strong> to return it to you for corrections.<\/p>\n

Payday Super deadline extensions<\/h2>\n

[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/03\/Payday-Super-Extensions-Icon.png” alt=”payday super extensions include new employees or new super funds, out of cycle payments, special circumstances and overlapping extensions” title_text=”Payday Super Extensions Icon” align=”center” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”-40px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

There are a few exemptions to Payday Super that allow you to extend the 7-business-day deadline for SG contributions after a QE event.<\/p>\n

You are provided an extension under any of these circumstances.<\/p>\n

    \n
  1. New employees or a new super fund nomination by an employee<\/li>\n
  2. Out-of-cycle payments<\/li>\n
  3. Special circumstances<\/li>\n
  4. Overlapping extensions<\/li>\n<\/ol>\n

    None of these removes your obligation to pay super contributions: they just give you more time to meet your commitments.<\/p>\n

    New employees or a new super fund nomination by an employee<\/h3>\n

    If you have a new employee or an employee who has changed super funds, your business has 20 business days<\/strong> from the relevant qualifying earnings (QE) day to make the payment.<\/p>\n

    This allows you time to adjust to the additional administrative duties involved in adding\/changing a super fund in your system.<\/p>\n

    Out-of-cycle payments<\/h3>\n

    Out-of-cycle payments are earnings that occur outside of regular QE events \u2014 the most common example is a bonus (monthly\/quarterly\/yearly). These are earnings defined as qualifying earnings but paid irregularly. When these earnings are paid, the super contribution calculated from them must be paid at the next QE event.<\/p>\n

    For example, let\u2019s say you pay your employees their normal salary and wages on the 1st of every month, but you pay a quarterly bonus\/commission on the 10th. The super contribution calculated from that bonus\/commission will need to be paid out on the 1st of the next month, alongside the regular QE event.<\/p>\n

    Special circumstances<\/h3>\n

    Under certain circumstances, the ATO may grant an extension of the Payday Super deadline. These circumstances could include natural disasters, such as floods or bushfires, that adversely affect how you conduct your business.<\/p>\n

    If you have provided an extension on special circumstance grounds, you have before the later of<\/strong> 20 business days to make the SG contribution from:<\/p>\n