Payday Super regulations released – understanding the new administrative uplift

The regulations sit alongside the Treasury Laws Amendment (Payday Superannuation) Act 2025 and clarify how key elements of the new framework will operate in practice.

A central feature of the regulations is the redesigned superannuation guarantee charge (SGC), including the introduction of a scalable administrative uplift. This marks a significant shift from the current flat administration fee and increases the need for payroll accuracy, strong controls and timely remediation.

Background

The Payday Super regulations support the legislative framework enacted in 2025 and provide additional technical detail ahead of commencement on 1 July 2026. They are intended to reduce administrative friction, incentivise employer compliance and streamline the processing of superannuation contributions.

While the regulations address a range of technical matters, the administrative uplift is one of the most consequential changes for employers given its direct impact on cost and compliance behaviour.

Administrative uplift – what has changed

From 1 July 2026, the current $20 per employee per quarter administration component of the SGC will be replaced by an administrative uplift calculated as a percentage of the SG shortfall.

The regulations confirm that:

• The default administrative uplift is 60 per cent of the employer’s SG shortfall, including notional earnings.
• The uplift may be reduced based on the employer’s recent compliance history.
• Further reductions apply where an employer makes a timely voluntary disclosure.

This significantly increases the financial consequences of late SG payments where issues are not identified and addressed early.

Administrative uplift – summary

The table below shows how the administrative uplift is applied, starting from the default position and then reducing based on an employer’s compliance history and the timing of any voluntary disclosure.

Further guidance expected – concessional contributions cap

As highlighted in our earlier alert, concerns were raised during consultation that the transition from quarterly SG payments to Payday Super could result in unintended concessional contributions cap breaches, particularly in the first year where contribution timing is brought forward.

In announcing the regulations, the Government confirmed its intention to introduce technical amendments to ensure individuals do not exceed their concessional contributions cap in 2026–27 solely as a result of the transition to Payday Super. While this provides welcome comfort, further detail on the scope and mechanics of these amendments is still expected.

Other key matters addressed by the regulations

While the administrative uplift is a significant feature of the regulations, they also address a number of other practical and technical matters relevant to employers, superannuation funds and administrators.

Moving Forward

Employers should review whether their systems and processes are capable of supporting the Payday Super framework, including:

• Superannuation guarantee contributions being received by superannuation funds within seven business days of payday.
• Accurate calculation of qualifying earnings for each pay cycle, including irregular and out‑of‑cycle payments.
• Robust controls to identify timing errors, overpayments and contribution bounce backs.
• Appropriate STP and SuperStream alignment to support increased ATO data‑matching and visibility.

Given the redesigned superannuation guarantee charge framework and enhanced ATO oversight, early preparation remains critical.

How can we help?

Grant Thornton can support employers as they prepare for Payday Super and the operation of the administrative uplift under the new regulations. Our assistance can include:

• Reviewing payroll configurations and SG settings to confirm accurate application of qualifying earnings across all pay elements.
• Identifying areas of exposure within existing payroll processes, including timing risks, overpayments and contribution bounce backs.
• Assisting with SG recalculations, sample testing and readiness assessments ahead of 1 July 2026.
• Advising on voluntary disclosure and remediation approaches where SG issues are identified.

If you require assistance, please reach out to Elizabeth Lucas or your usual Grant Thornton advisor. You can also watch our recent FBT and Payday Super update webinar on demand.

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