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Countdown to Payday Super - your top five questions answered

Published February 2026

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Hostplus
Content team
4 min read
Updated 19 Feb 2026
  • Employers

The Payday Super reforms passed through Parliament in November 2025 and will commence from 1 July 2026. These reforms mean faster deadlines, tighter compliance, and a whole new approach to paying contributions.  

To help you make sense of the new rules, we’ve answered the top five questions our employers are asking, so you know exactly what’s required and when. 

1. What does the new seven-business-day rule mean for employers?

From 1 July 2026, employers must ensure superannuation contributions are received by the employee’s super fund within seven business days of payday – the day wages are paid. The seven-business-day period starts from the actual payday, not the payroll processing date or week-ending date.  

Contributions are only considered “on time” when received and allocated by the fund to the member’s account, not when they leave your bank or reach a clearing house. 

2. How does the ATO define “business days” for Payday Super?

A business day is any day other than: 

  • a Saturday or Sunday 
  • a public holiday for the whole of any Australian state or territory. 

This means if there is a state or territory-wide public holiday occurring anywhere in Australia, that day will not be considered a business day for the purposes of Payday Super, even if you aren’t in the relevant state or territory. 

If a public holiday applies to only part of a state or territory (for example, Royal Hobart Show Day), that day is still a business day for Payday Super purposes. 

3. Is there an extension for new employees or members when making super contributions?

Yes. For the first contribution to a new employee’s super fund, or when an employee changes funds, employers have up to 20 business days from the payday to make the payment. 

This extension allows time for onboarding and fund verification.

4. Will there be any exemptions or adjustments to the concessional contributions cap during the transition?

No exemptions or adjustments are planned for the $30,000 concessional contributions cap in the first year of Payday Super. Contributions count in the financial year the super fund receives them.  

Here’s what this means during the transition: 

  • Contributions for the June 2026 quarter will be paid in July and counted toward the 2026-27 financial year concessional contribution cap.  
  • From 1 July 2026, the new seven-business-day rule applies. So, contributions for April, May, and June 2027 may also be paid in the same financial year, and count toward the 2026-27 cap. 
  • Effectively, employers could be paying three months’ worth of contributions plus 12 months of ongoing contributions in the same financial year. This may push some employees over the cap. 

The ATO will notify affected employees, who can choose to pay the extra tax or release excess contributions.

5. What should employers do to prepare?

Hostplus is here to help you prepare for the transition. Here are some steps you can take: 

  • Register for one of our upcoming Payday Super webinars to learn more about technology solutions to streamline payments and onboarding, along with practical steps to prepare your systems, processes and teams.
  • Keep up to date with the latest developments by reading Hostplus’ latest emails and newsletters. 
  • Visit our Payday Super page to learn more.