22 June 2026 · 8 min read
Quick Answer
After the SBSCH closes on 1 July 2026, you pay employee super by: (1) calculating 12% of each employee''s ordinary time earnings in your payroll tool; (2) reporting the pay event through Single Touch Payroll on or before payday; (3) paying the super through a replacement clearing house — your fund''s facility, a commercial gateway, or payroll software with auto super — so it reaches each fund within 7 days of payday; and (4) keeping a permanent record. From 1 July 2026 super is no longer quarterly; it must be paid within 7 days of every payday under Payday Super.
The SBSCH made paying super deceptively simple: you logged in, entered each employee''s amount, paid once, and the ATO distributed it to every fund. When it closes on 1 July 2026, that one-click flow disappears — and it disappears on the exact day the rules get stricter, because Payday Super begins the same day.
The combination trips up a lot of employers. It is not just that you need a new tool; it is that the timing changes completely. Under the old system you could pay super quarterly. From 1 July 2026 you must pay it within 7 days of every single payday. Miss that window and you are liable for the Super Guarantee Charge, which includes the shortfall, interest and an administration fee — and for company directors, personal liability under a Director Penalty Notice.
This guide breaks the new process into clear steps so you never miss a payment. SAB Account AI (sabaccountai.com) automates steps 1, 2 and 4 — calculation, STP reporting and record-keeping — and flags the 7-day deadline on every pay run, so the only thing you have to do is approve the payment.
The Superannuation Guarantee rate is 12% of ordinary time earnings (OTE) for 2025-26 and beyond. OTE includes base salary, commissions, shift loadings and most allowances, but not overtime-only payments. Since 1 July 2022 there is no minimum monthly earnings threshold — super is payable from the first dollar an employee earns.
The SBSCH never did this calculation for you; you had to work out the amount and enter it. Your replacement must either calculate it automatically or you must calculate it yourself accurately every pay run. Under-paying — even by getting the OTE base wrong — triggers a Super Guarantee Charge, so automation here directly protects you from penalties.
Common error: Employers often calculate super only on base pay and miss commissions or loadings that count as OTE. SAB Account AI applies the correct OTE base automatically.
Super calculation essentials
Single Touch Payroll Phase 2 requires you to report each pay event to the ATO on or before the day you pay your employees. This is how the ATO now tracks whether super is being paid correctly and on time. Your replacement system must be STP-enabled — the SBSCH itself did not handle STP, so if you previously reported STP through separate software, that part of your workflow continues.
Under Payday Super, STP reporting and super payment become tightly linked. The ATO matches your reported OTE against the super contributions received by funds to confirm the 7-day deadline was met. Accurate STP reporting is therefore not optional housekeeping; it is the evidence trail that proves your compliance.
Why it matters more now: Under Payday Super the ATO cross-checks your STP report against what funds actually received. Your STP data is the proof you paid on time.
STP reporting steps
This is the step the SBSCH used to handle, and it is where you need a replacement payment method. Options: your super fund''s clearing house, a commercial clearing house, or payroll software with built-in auto super. Whichever you use, the critical rule is timing — under Payday Super, contributions must be received and allocated by each employee''s fund within 7 days of payday, not merely sent.
Build in a buffer. Clearing houses can take several business days to distribute payments to funds, so initiating payment on day 6 of 7 is risky. Initiate within 1-2 days of payday to be safe. The 7-day clock is measured at the fund''s end, so processing delays are your responsibility, not your excuse.
7-day rule: Payday Super measures the deadline by when the fund receives the money. Initiate payment within a day or two of payday — never leave it to the last day.
Payment timing rules
You must keep super records for five years under the Superannuation Guarantee (Administration) Act 1992. The SBSCH stored your payment history — but only until it closes, after which those records become permanently inaccessible. Your replacement workflow must keep its own records so you are never dependent on a portal that can be switched off.
Good records protect you in an ATO review: proof of the OTE used, the 12% calculation, the payment date, and the fund confirmation. SAB Account AI stores all of this automatically against every payslip, so your audit trail is complete and permanent — the single biggest improvement over relying on a government portal for record-keeping.
Permanent vs portal: The SBSCH proved why you should not trust a government portal as your only record store. Keep your own permanent records from day one.
Record-keeping requirements
SAB Account AI (sabaccountai.com) calculates 12% super on every pay run, reports through STP, flags the Payday Super 7-day deadline and keeps permanent records — so paying super after the SBSCH closes takes one click. From $9/month.
SAB Account AI — ATO-compliant invoicing and payslips for Australian small businesses. From $9/mo.
Start free trialCalculate 12% of each employee''s ordinary time earnings, report the pay event through STP on or before payday, pay via a replacement clearing house or payroll auto super so funds are received within 7 days of payday, and keep a permanent record.
Super becomes payable within 7 days of every payday under Payday Super, replacing the old quarterly deadlines of 28 October, 28 January, 28 April and 28 July.
Ordinary time earnings (OTE) includes base salary, commissions, most allowances and shift loadings, but excludes overtime-only payments. Super is calculated at 12% of OTE.
You become liable for the Super Guarantee Charge — the shortfall plus interest and an administration fee — and company directors can be personally liable under a Director Penalty Notice.
SAB Account AI automates the calculation, STP reporting, Payday Super deadline tracking and permanent record-keeping, and works alongside your chosen payment method to move funds — owning the compliance layer the ATO actually penalises you on.