INSIGHT · FINANCE & TAX RECORDS

Super is due per payday. For an eligible
contractor paid on invoice, that is payment day.

19 October 2026

Payday Super started on 1 July 2026 under the Treasury Laws Amendment (Payday Superannuation) Act 2025. The ATO states super guarantee, still 12%, must now be received by the fund within 7 business days after each payday and is calculated on qualifying earnings, replacing the quarterly deadline of 28 days after quarter-end. Independent contractors paid mainly for their labour are still employees for super purposes, and the ATO states their qualifying earnings include all labour payments, now including overtime, but not materials, equipment or GST.

A hand holding a calculator over a printed invoice on a clipboard

Analysed 19 October 2026 · Treasury Laws Amendment (Payday Superannuation) Act 2025 (No. 57, 2025) and Superannuation Guarantee Charge Amendment Act 2025 (No. 58, 2025) · Superannuation Guarantee (Administration) Act 1992, Compilation No. 78, 1 July 2026 · ATO Payday Super pages published 23 June to 27 June 2026 and last updated 21 June to 29 September 2026 · all pages read 19 October 2026.

Key takeaways

The deadline is now per payday: For payments of qualifying earnings from 1 July 2026, the ATO states contributions must be received by the fund within 7 business days after payday. Before, they had to be received within 28 days after the end of each quarter. The June 2026 quarter was the last, due 28 July 2026.
Labour contractors are inside it: The ATO states independent contractors paid mainly for their labour are employees for super guarantee purposes, whether or not they have an ABN, and the 7 business day timeframe applies to them.
Overtime on a labour contract now counts: To 30 June 2026 the ATO excluded overtime paid at overtime rates from a contractor's ordinary time earnings. From 1 July 2026 it states all payments relating to the contractor's labour are qualifying earnings, including overtime. Materials, equipment, other non-labour items and GST stay out.
Invoice payment is the payday: The ATO states the QE day is the day qualifying earnings are paid, and that payments to an eligible contractor remunerated upon invoice are not out-of-cycle payments. For that contractor, each invoice payment starts its own 7 business day clock.
We would record the labour split per invoice: A system-design recommendation: each payment to a worker the business treats as an employee for super carries its payment date, the labour amount and how it was worked out, the contribution amount, and the date the fund received it.

What changed on 1 July 2026

The Act's amendments apply to a QE day (the day an employer pays qualifying earnings) that is 1 July 2026 or later. The ATO sets out the before and after.

The Treasury Laws Amendment (Payday Superannuation) Act 2025 received assent on 6 November 2025 and commences with the Superannuation Guarantee Charge Amendment Act 2025, whose commencement is 1 July 2026. Schedule 1 item 182 keeps the old rules for quarters ending before 1 July 2026, including any charge for those quarters.

Item	Before 1 July 2026	From 1 July 2026
Deadline	Received by the fund within 28 days of the end of the quarter: 28 October, 28 January, 28 April, 28 July	Received by the fund within 7 business days after paying the employee, with enough information to allocate it
Base	12% of ordinary time earnings	12% of qualifying earnings: ordinary time earnings, all commissions, salary sacrifice amounts and payments under the expanded definition of employee
Reporting through Single Touch Payroll (STP)	Ordinary time earnings or super liability	Both qualifying earnings and super liability
Super guarantee charge	Self-assessed with a statement; interest at 10% a year; flat administration fee; not deductible	Assessed by the ATO; interest compounding daily at the general interest charge rate; an administrative uplift amount; tax deductible
Penalties	Up to 200% of the charge, remissible	25% or 50% of the unpaid charge, depending on prior penalties
Fund allocation	20 business days to allocate or return	3 business days to allocate or return
Small Business Superannuation Clearing House	Closed to new users from 1 October 2025; existing users until 30 June 2026	No longer accessible

Which contractor payments count

Section 12(3) of the Superannuation Guarantee (Administration) Act 1992 is unchanged: "If a person works under a contract that is wholly or principally for the labour of the person, the person is an employee of the other party to the contract." The ATO states the test in three parts.

The ATO's own painting example: a shop contracts a painting business to achieve a result, and has no super guarantee obligation for the painter, "even if Pete is a sole trader and does the work himself". Whether a particular subcontractor meets the test is a determination for the business and its advisers on the facts of each contract.

Mainly for labour: Paid under a verbal or written contract that is mainly for their labour, which the ATO defines as more than half the dollar value of the contract being for their labour.
For their personal labour and skills: Payment isn't dependent on achieving a specified result.
Performing the work themselves: The work cannot be delegated to someone else.
What does not decide it: The ATO states it doesn't matter whether the contractor has an ABN. If the contract is with a company, trust or partnership, the business does not have to pay super for the person that entity employs to do the work.

The labour line on a subcontractor invoice

For a contractor who meets the test, the ATO separates the invoice into what counts and what does not, and the overtime treatment changed on 1 July 2026.

Where a contract does not detail labour and non-labour separately, the ATO states a business can use reasonable market value to work out the labour part, "considering normal industry practices", and "must keep records showing how you worked out the labour part of the payment".

Part of the payment	Earnings paid up to 30 June 2026	Earnings from 1 July 2026
Labour	Counted: ordinary time earnings were generally the labour component	Counted: all payments relating to the contractor's labour
Overtime for labour	Not counted where paid at overtime rates	Counted, whether during or outside ordinary hours
Materials, equipment, other non-labour items	Not counted	Not counted
GST	Not counted	Not counted

For employees on a building award: The ATO lists task allowances, including for working at heights or in confined spaces, as qualifying earnings. Its example of a tool allowance under the Joinery and Building Trades Award, expected to be used in full on tools, is not qualifying earnings. Overtime for employees whose ordinary hours are clearly identified is still excluded.

The clock starts on the day
the invoice is paid.

The ATO states a contribution is on time if the fund receives it within 7 business days after the QE day, and that a business day excludes weekends and any public holiday for the whole of any Australian state or territory, even one the business is not in.

Section 79 of the Act requires an employer to keep records that include documents relevant to working out whether there is a shortfall for a QE day, and to retain them until 5 years after they were prepared or obtained, or after completion of the transactions or acts they relate to, whichever is later. The ATO states it is essential to keep records of how qualifying earnings and contributions were calculated, including corrections for an earlier payday.

Invoices are their own paydays: "Payments to an eligible contractor who is remunerated upon invoice to the employer are not out-of-cycle payments." Two invoices paid on two days start two clocks.
First payment to a new worker: The first contribution for a new employee, or to a new fund, must be received within 20 business days after the QE day. The ATO's worked example is a worker "engaged as a contractor for her labour": first paid 9 July 2026, contribution due 7 August 2026.
Overlapping due dates: Where a later payday's due date falls before the extended due date of an earlier one, the ATO's bunching rule moves the later one to the extended date.
Clearing houses: The ATO states a business using a commercial clearing house needs to allow enough time for it to process the payment within the 7 business days.

Reporting, and the first year

Single Touch Payroll and the ATO's first-year compliance approach each carry dates of their own.

Contractors in STP: The ATO states it is not mandatory to report payments to independent contractors paid mainly for their labour in STP. A business that reports them voluntarily must meet the STP requirements from 1 July 2026.
Employees in STP: For paydays from 1 July 2026, each employee's year-to-date qualifying earnings and superannuation liability are reported. The ATO states it will accept superannuation liability and ordinary time earnings in pay events until 30 June 2027, and that once an employer starts reporting qualifying earnings, ordinary time earnings will no longer be accepted.
Practical Compliance Guideline 2026/1: For 1 July 2026 to 30 June 2027 the ATO groups employers who miss a contribution into low, medium and high risk. Medium generally means any unpaid amount was fixed within 28 days after the end of the quarter in which the qualifying earnings were paid; high means it was not.
Corrections: The ATO states paying outstanding amounts to the fund before an assessment reduces the charge, and that lodging a voluntary disclosure statement can reduce the charge, especially if lodged early.

What we would put in a system

For each worker paid for labour, and each payment to them, we would test for five fields.

Where agents help here is narrow. A finance agent can read a subcontractor invoice, separate labour, materials and GST as invoiced, compute the 7 business day due date from the payment date, and flag a contribution not yet received, and a person confirms each entry. No agent decides whether a subcontractor is an employee for super purposes, what the labour component is where the invoice does not say, or whether a business has complied. Those are determinations for the business, the ATO and your advisers.

Field	Why it is load-bearing
Super treatment of the worker, the basis recorded and who confirmed it	The ATO's three-part test is applied contract by contract; the record shows what was decided and when.
Payment date of each invoice or pay run (the QE day)	Each starts a 7 business day clock, or 20 for a new worker or fund.
Labour amount, non-labour amount, GST, and the method used to split them	The ATO requires records showing how the labour part was worked out.
Contribution amount, date sent and date the fund received or rejected it	On time means received, with allocation details, not sent.
Corrections, with the QE day they relate to	Section 79 records must let a shortfall for a QE day be worked out, kept until 5 years after the later of preparation or completion of the transactions.

Questions worth asking
of your own payroll records

For a builder: for each subcontractor you pay super for, does the payables record show the date each invoice was paid?

The ATO states the QE day is the day qualifying earnings are paid and that invoice payments are not out-of-cycle payments. Without the payment date on the record, the 7 business day due date cannot be shown. General information as read on 19 October 2026, not tax advice.

For a builder or trade business: where an invoice does not separate labour from materials, how was the labour amount worked out?

The ATO allows reasonable market value and normal industry practice, and requires records showing how the labour part was worked out. A field for the method answers this later. General information as read on 19 October 2026, not tax advice.

For a building group: can each entity show the date funds received contributions, not only the date they were sent?

The ATO's test of on time is receipt by the fund, with enough information to allocate the contribution, within 7 business days after payday. General information as read on 19 October 2026, not tax advice.

Questions people ask
about Payday Super

When did Payday Super start?

Payday Super applies to payments of qualifying earnings made on or after 1 July 2026. The Treasury Laws Amendment (Payday Superannuation) Act 2025 received assent on 6 November 2025 and commenced on 1 July 2026, with the Superannuation Guarantee Charge Amendment Act 2025. Super for the June 2026 quarter was still due under the quarterly rules by 28 July 2026, according to the ATO.

Do I have to pay super for subcontractors under Payday Super?

The ATO states independent contractors paid mainly for their labour are employees for super guarantee purposes, whether or not they have an ABN: paid under a contract more than half of whose dollar value is for labour, for their personal labour and skills, and doing the work themselves. The Payday Super Act did not amend section 12(3), which sets this test. General information as read on 19 October 2026, not tax advice.

What are qualifying earnings for a contractor?

From 1 July 2026, the ATO states all payments relating to an eligible independent contractor's labour are qualifying earnings, whether during or outside ordinary hours, including overtime. Payments for materials, equipment or other non-labour items, and GST, are excluded. The minimum super guarantee is 12% of qualifying earnings, and the ATO states none is needed on earnings above the maximum contribution base ($270,830 for 2026-27). General information as read on 19 October 2026, not tax advice.

How long do I have to pay super under Payday Super?

The ATO states the contribution must be received by the employee's fund within 7 business days after the day qualifying earnings are paid, or within 20 business days for a new employee's or new fund's first contribution. A business day excludes weekends and any public holiday for a whole state or territory. General information as read on 19 October 2026, not tax advice.

Do I report contractor super in Single Touch Payroll?

The ATO states it is not mandatory to report payments to independent contractors paid mainly for their labour in STP; a business that chooses to report them must meet the STP requirements from 1 July 2026. For employees, qualifying earnings and super liability are reported for paydays from 1 July 2026. General information as read on 19 October 2026, not tax advice.

What this analysis
does and does not show.

Evidence note

What it shows: The commencement and application of the Payday Super amendments from the Acts on the Federal Register of Legislation, the definitions of qualifying earnings, QE day and usual period, s 12(3) and s 79 from the Superannuation Guarantee (Administration) Act 1992 at Compilation No. 78, and the ATO's published guidance on the before and after rules, contractors, deadlines, STP and first-year compliance, all as read on 19 October 2026.
Key facts quoted: Act No. 57, 2025, assent 6 November 2025, commencement 1 July 2026; new rules for a QE day on or after 1 July 2026 (Sch 1 item 182); 12% of qualifying earnings; received within 7 business days after payday (20 for a new employee or fund); contractor test more than half the dollar value for labour; contractor overtime included from 1 July 2026; materials, equipment and GST excluded; STP for contractors not mandatory; PCG 2026/1 first year 1 July 2026 to 30 June 2027.

The ATO pages can change; dates are as shown on each page on 19 October 2026. ATO pages were read directly; the Acts were downloaded from the Federal Register of Legislation.
We did not read Practical Compliance Guideline 2026/1, Law Companion Ruling 2026/D1 or Legislative Instrument LI 2026/20 themselves; statements about them are the ATO web pages' descriptions.
The ATO's contractor test is quoted as published. We did not read the ATO's superannuation guarantee ruling on who is an employee, and nothing here classifies any worker.
Award, enterprise agreement and portable long service leave obligations, the maximum contribution base and the choice of fund rules are not covered.
Federal law, applying in every state and territory. Nothing here is tax, legal or financial advice, and it does not determine whether any business has complied.

What to watch next

Dates the ATO has published for the end of the first year.

30 June 2027: The ATO's first-year approach in PCG 2026/1 covers 1 July 2026 to 30 June 2027, and the ATO states it will accept ordinary time earnings in STP pay events until that date, but not once an employer has started reporting qualifying earnings.
1 July 2027: The ATO states that from this date, if an employer does not report both qualifying earnings and superannuation liability in STP, it will reject the reporting and penalties may apply.

Bring us one subcontractor invoice and its super payment.

Send us a paid subcontractor invoice and the matching super contribution record. We will show you which dates the ATO's 7 business day rule runs between, and whether your records hold the labour split, the payment date and the fund's receipt date.

This article is general information about published Commonwealth legislation and ATO guidance. It is not tax, legal or financial advice and it does not determine whether any worker is an employee for super purposes or whether any business has complied. All provisions and pages are as read on 19 October 2026 at the versions listed in the sources.

Send us the invoice · TPAR and contractor payments

Sources

Suggested citation: Treasury Laws Amendment (Payday Superannuation) Act 2025 (Cth), Superannuation Guarantee (Administration) Act 1992 (Cth) Compilation No. 78, and ATO Payday Super guidance at the dates listed, as read 19 October 2026. Derived figures: none.

Super is due per payday. For an eligible contractor paid on invoice, that is payment day.