Important Reminders

1 July 2026 is an important date in relation to the payment of wages and superannuation.

The increases to the award rates of pay apply from the first full pay period that commences on or after 1 July 2026. Updated wages schedules showing the new award classification pay rates and allowances are on our website.

Payday super commences on 1 July 2026. Any pays processed on or after 1 July 2026 have to comply with the new requirements.

Until now superannuation has been paid on ordinary time earnings (OTE). Under Payday Super, Ordinary Time Earnings is replaced by a new term called Qualifying Earnings (QE).

What counts as qualifying earnings?

When you run payroll, super needs to be calculated on:

• Base salary and wages

• Paid leave, including annual leave, sick leave, personal leave, long service leave

• Certain allowances such as skilled work, on-call, adverse conditions and retention

• Lump sum payments including back pay, return to work and some payments in lieu of notice

• All bonuses paid in respect of ordinary hours of work

• All commissions including commissions for work performed outside ordinary hours, which previously weren’t included in super calculations

What doesn’t count as qualifying earnings?

You don’t need to calculate super on:

• Overtime payments

• Expense reimbursements

• Paid parental leave (government or employer-funded)

• Termination payments such as redundancy

See our previous article on payday super here