How Payday Super Will Work for Electrical Contractors and Subcontractors
From 1 July 2026, the way electrical contractors and subcontractors manage employee superannuation payments will change significantly under the new Payday Super system.
Instead of paying super quarterly, employers will be required to calculate and pay super at the same time employees are paid their wages. This means super contributions must be processed on every pay cycle, whether wages are paid weekly or fortnightly.
Under the new arrangements:
- Super guarantee will be calculated at 12% of an employee’s qualifying earnings. This new term combines ordinary time earnings and other eligible payments into a single calculation method.
- Super contributions must be paid to the employee’s nominated super fund on payday.
- The contribution must generally be received by the super fund within 7 business days of payday, unless a specific extended timeframe applies, such as for new employees.
For electrical contractors and subcontractors, this will require tighter payroll administration, stronger cashflow management, and closer coordination between payroll systems, accounting platforms, and super clearing houses.
For more information contact NECA. Further information is on the Tax Office website at https://www.ato.gov.au/businesses-and-organisations/super-for-employers/payday-super/about-payday-super