Highlights

  • Payday Super has applied since 1 July 2026, alongside expanded STP reporting.
  • Employers must report qualifying earnings and super liability for each employee through STP.
  • ATO guidance says incomplete reports will be rejected from 1 July 2027 and penalties may apply.
  • Payroll mapping errors can create apparent super shortfalls even when payments are correct.

Payday Super’s seven-business-day payment rule is only half the payroll challenge. A second deadline is approaching inside Single Touch Payroll. Employers have a transition period to move from old ordinary-time-earnings reporting to qualifying earnings, but that flexibility ends on 1 July 2027. After that date, the ATO says reports missing the required super fields will be rejected, making payroll configuration as important as payment speed.

Two Figures Now Sit at the Centre of STP

Under Payday Super, employers report year-to-date qualifying earnings and year-to-date super liability for each employee through STP. Qualifying earnings replaced ordinary time earnings as the super-guarantee base and can include commissions, relevant salary-sacrificed amounts and certain payments to workers treated as employees for super purposes. The liability field can exceed the statutory SG amount where an award or agreement requires additional super.

The Grace Period Has a Hard End

During the transition, ATO guidance allows employers to continue reporting ordinary time earnings with super liability until 30 June 2027. Once an employer starts reporting qualifying earnings, however, the guidance says OTE reporting will no longer be accepted. From 1 July 2027, reports that omit qualifying earnings or super-liability amounts are expected to be rejected, with penalties potentially applying.

Why Mapping Errors Can Look Like Underpayments

The ATO compares STP liabilities with contribution data received from super funds. A pay code incorrectly classified as qualifying earnings can therefore inflate the reported liability. Even where the employer pays the correct amount, the data match may show an apparent gap. Reimbursements and fringe benefits are examples of items that require careful mapping.

Payment Speed Cannot Fix Bad Payroll Data

Faster contribution channels can help funds receive money promptly, but they do not reconcile an incorrect STP record. Employers need payment data and payroll reporting to tell the same story. That means reviewing commissions, salary sacrifice, contractor arrangements, overtime, reimbursements and award-based super obligations before the transition closes.

What Employers Should Do During 2026-27

Employers should test software updates, map pay codes, document super calculations and establish a process for correcting STP errors. Businesses that previously relied on the Small Business Superannuation Clearing House also need an alternative payment channel. The goal is to enter July 2027 with both the payment workflow and the reporting fields already operating correctly.

The Seven-Day Rule Still Runs Beside Reporting

Employers also need to remember that correct STP reporting does not replace the payment obligation. Payday Super requires contributions to reach the employee’s fund within the legislated timeframe, so payroll teams must coordinate the pay event, contribution file, payment channel and error correction. A technically correct liability reported on payday can still become a compliance problem if the money arrives late. Conversely, an on-time payment can trigger unnecessary follow-up if STP data is wrong. The strongest process treats reporting and payment as one reconciled workflow rather than two separate tasks.