Payday Super: Can your payroll solution handle QE Reporting?

From 1 July 2026, Payday Super changes include more than “when” super gets paid. Soon, employers must also report qualifying earnings (QE) accurately through Single Touch Payroll every pay cycle. 

Some payroll providers may be ready for the timing change, but the equally important question is: can your system handle QE reporting?

Super is currently calculated on ordinary time earnings (OTE) — which broadly covers an employee’s hours of work, including salary and wages. While payroll reporting through STP already captures detailed earnings components, superannuation is generally calculated on OTE and paid quarterly.

The shift from Ordinary Time Earnings (OTE)

From 1 July 2026, Payday Super introduces a more structured earnings base for super calculations, often referred to as qualifying earnings (QE). QE builds on OTE by standardising how earnings are treated and reducing ambiguity around what is included.

Payroll teams must report two key figures in each pay cycle:

• Qualifying earnings: the earnings base used to calculate the minimum superannuation guarantee owed
• Super liability: the total super actually payable, which may be higher where an award or enterprise agreements require super to be paid on additional earnings

Pay items worth reviewing before July:

• Pay item classification: Some allowances, bonuses, and employer contributions may be treated differently under QE, even if previously considered superable under OTE rules
• Salary sacrifice arrangements: These may affect how earnings are reported and how super guarantee obligations are calculated under the new framework, and should be reviewed carefully
• Award- and policy-driven super: Employer obligations such as super on parental leave or overtime may extend beyond the minimum calculation and must still be tracked as part of total super liability

Accurate QE classification ensures super is calculated correctly each cycle, including pay items, salary sacrifice, and award obligations. For a full breakdown of what counts as QE and how to calculate it, see our guide to qualifying earnings.

• Review all pay items to confirm which count as QE under the ATO's definition.
• Audit salary sacrifice and fringe benefits to understand their impact on QE reporting.
• Confirm your payroll software is ready for QE reporting and automated STP submissions.
• Document processes and prepare audit trails to support accurate reporting and reduce rework.

Not sure where your system stands today? Use our Payday Super readiness calculator to get a clearer picture before July.

The ATO has confirmed that in the first year of Payday Super (1 July 2026 to 30 June 2027), it will focus on employers who are not making a genuine effort to comply, rather than those who are trying and making minor errors along the way. This is outlined in PCG 2026/1.

Employers may fall into three categories:

• Low risk: Employers making a genuine effort to pay SG on time and correct any errors promptly, with a final SG shortfall of nil. These employers will not be the focus of ATO compliance action.
  
  
• Medium risk: Employers where all individual final SG shortfalls are nil within 28 days of the end of the relevant quarter.
  
  
• High risk: Employers with SG shortfalls remaining after that 28-day window may be liable for the super guarantee charge.

The approach is designed to support employers through the transition. Getting set up correctly before July and fixing any issues quickly is what keeps payroll teams in good standing with the ATO.

Note: PCG 2026/1 applies to QE days from 1 July 2026 to 30 June 2027. From 1 July 2027, the standard compliance framework applies.

In partnership with Beam, Access is actively preparing to align payroll and super payment processes with the new timing and reporting requirements ahead of 1 July. Updates and guidance are being shared with customers as we speak. 

How Access supports employers preparing for the transition:

• Automated superannuation processing - integrated with Beam to calculate and process super contributions as part of every pay run, reducing manual work.
• STP Phase 2 reporting - already in place to support the structured, per-pay-cycle reporting that Payday Super builds on.
• Audit trails and reconciliation tools - giving payroll teams confidence that reports are accurate and traceable.
• Support for complex pay scenarios - including salary sacrifice and award-related pay items.

QE reporting adds a new layer to Payday Super, but it doesn’t have to keep your team up at night. Access automates Payday Super from start to finish—so your team can leave it to the system and start planning their next holiday.