From 1 July 2026, the way employers calculate superannuation will change. The ATO is introducing Qualifying Earnings (QE) as the new base for super contributions.

What’s Changing?

Currently, super is calculated on Ordinary Time Earnings (OTE) — wages for standard hours of work, excluding overtime and certain allowances.

Under Payday Super, contributions will be based on Qualifying Earnings (QE), a broader measure that includes:

  • All Ordinary Time Earnings (OTE)
  • All Commissions
  • Salary sacrifice contributions
  • Payments to certain contractors (extended definition employees), including payments to independent contractors

What This Means for You

  • Super contributions will increase to 12% of QE.
  • More payment types will be captured, ensuring consistency and fairness.
  • Employers must report QE and super liabilities each payday via Single Touch Payroll (STP).

Why it matters: This change is designed to simplify super calculations and make sure employees receive the right contributions on time. For many businesses, the impact will be minimal — but payroll systems and reporting processes will need updating.

For more details, refer to the links below: