Payday Super: What medical practices need to do now
- Kelly Chard
- Apr 15
- 2 min read
Updated: Apr 15
If you employ staff, Payday Super is about to change how you run payroll, cash flow, and compliance every single pay cycle. In this video, I break down what’s changing, the risks for healthcare practices, and the exact steps to get ready.
What’s changing (at a glance)
Super timing: Moves from quarterly to every payday. Your 12% must hit the employee’s super fund within seven business days of payday (the “QE day”).
New calculation base: Ordinary Time Earnings are replaced by Qualifying Earnings (QE). QE includes base pay, commissions, leave, salary sacrifice that would otherwise be earnings, and payments to contractors for their labour (if super applies). Overtime, workers’ comp, paid parental leave, and under-18s working <30hrs/week remain excluded.
STP reporting: You’ll report QE and the related super liability each cycle.
Annual cap from 2027: A single annual maximum earnings base (forecast around $270,833) replaces the quarterly cap—watch high earners closely.
Small Business Super Clearing House: Retires 1 July 2026. Keep historical records and transition to payroll software (e.g., Xero, MYOB, Reckon) ahead of time.
Why this matters now
The seven-day clock is tight: Delays in approvals and clearing houses can push you over. Best practice is to approve and pay super the same day as payroll.
July “double-up”: You may owe Q4 super (due 28 July) while starting Payday Super in real time. Consider paying Q4 before 30 June to start clean on 1 July.
Late or missed payments are costly: Payments are applied to the oldest unpaid period first. Expect super guarantee charges, notional earnings, and an admin uplift (up to 60%). Late super is now tax-deductible, but penalties still sting. If you’re late, pay the fund immediately—don’t wait for the ATO.
Practice-specific hotspots
Contractors: If super applies to contractor labour, it’s QE—and it’s due within seven days of payment. Often sits outside payroll—don’t miss it. Get tailored advice.
Employee onboarding: Biggest late-risk area. Use stapled fund requests early and don’t onboard without TFN and super details where possible.
Incorrect fund details: Audit all employees now; watch for fund mergers and SMSF ESAs. ATO member verification tool is coming.
Awards and payroll categories: Map every allowance/penalty to QE or non-QE and configure software correctly. Get expert HR/award support if needed.
Overseas hires: TFN/super setup can take weeks. Plan start dates accordingly.
Governance gaps: Nominate a Payday Super champion, compress approval workflows, enable rejection alerts, and define escalation paths—especially with outsourced providers.
Concessions (limited but helpful)
New starters and fund changes: Additional days available—but act fast.
Genuine out-of-cycle payments (e.g., a one-off bonus): You can include super in the next regular pay cycle.
Do this next
Appoint a Payday Super champion and tighten same-day approval processes.
Audit all employee super details and payroll category settings for QE.
Review contractor arrangements and get legal/accounting advice where needed.
Map July cash flow: aim to clear Q4 super before 30 June.
Prepare to transition off the Small Business Super Clearing House well before 1 July 2026.
Set up system alerts, exception reporting, and clear escalation pathways.
If you’d like support implementing this in your practice, the GrowthMD team is here to help.
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