Superannuation (or super) is a type of long-term savings for retirement. Businesses and organisations must pay super for their employees, as well as for some independent contractors, entertainers and performers.
From 1 July 2026, super must be paid at the same time as wages, salary or fees are paid. This is known as Payday Super.
If you are setting yourself up to pay super for the first time, we recommend you set yourself up for Payday Super. That way, you won’t have to change your systems on 1 July.
If you have questions about paying super quarterly in the meantime, contact the ATO for advice and information.
Step 1—Know the rules
You need to know:
You also need to know what systems you need and what records to keep. You can find this information in the steps on this page.
Super cannot be paid directly into someone’s bank account. It must be paid into their super fund. Independent contractors should not invoice for super.
From 1 July 2026, super must be paid each payday. This is called Payday Super.
- For employees — this means paying super when you pay their salary or wages
- For independent contractors who are entitled to super — this means paying super when you pay their invoice. Learn which independent contractors are entitled to super.
Super payments must reach the super fund within 7 business days of payday.
Tips for meeting the 7-day rule
- Check payment cut-off times with your bank.
- Confirm clearing house processing times.
- Fix rejected or failed payments quickly.
No matter the size of your business — the rules are the same
Knowing how to calculate and pay super correctly is the same whether you are:
- a small business engaging one casual employee or an independent contractor for a one-off job
- a larger organisation with multiple employees and contractors
- an independent contractor yourself engaging another independent contractor
- a project or festival hiring people for a short time or a one-off event.
Keep learning:
Step 2—Set up a SuperStream-compliant system
All super contributions must be paid using a SuperStream-compliant system. SuperStream is the mandatory standard that requires you to send payments and related data to super funds electronically.
You can use:
- A payroll system — a formal system used to pay employees and manage tax and superannuation.
- A super fund online system — many super funds offer their own online portals where you can make contributions directly. This can be a simple option if you only need to pay super to one or a small number of funds.
- A super clearing house — a service that lets you pay super for multiple workers and multiple super funds in one transaction. This is a practical option for businesses with several workers who have different funds.
- EFT or BPAY direct to the fund — paying super contributions directly to a fund using standard banking methods. This may suit very small or occasional payments.
- A messaging portal — a system that sends payment and reporting information electronically to super funds in the required format. Often built into payroll or accounting software and suitable for businesses needing to meet compliance requirements efficiently.
The one that’s right for you may depend on how many people you pay super for and how often.
Whichever system you choose, you will need to make sure it meets SuperStream requirements. Learn more about choosing an option on the ATO’s website.
Remember: Super must be paid into a super fund. You can’t pay super directly to a person or business, even if they ask you to.
Keep learning:
Step 3—Choose a default superannuation fund for your business
Most people you hire will already have a super fund you can pay contributions into.
Sometimes, a person may not have a fund yet (for example, if they are new to the workforce) or they don’t tell you which fund they want you to pay into. In some cases, people aren’t eligible to nominate a fund for you to pay into (learn more about who can choose a super fund on the ATO website).
This is why you need a default fund.
You must use a nominated (default) super fund if:
- your employee or eligible independent contractor doesn’t choose a fund, or isn’t eligible to choose a fund, for you to pay into, and
- the ATO advises you that they don't have a stapled super fund.
When choosing a default fund:
- Check your award or agreement — some awards and enterprise agreements say which default fund you must use. If you and your employees are covered by an award or enterprise agreement, check it to see what it says.
- Check it is compliant — Default funds must:
- be an Australian Prudential Regulation Authority (APRA) regulated complying fund
- offer a MySuper product, and
-
meet compliance requirements.
To find out:
- Look them up at Superfund Lookup
- Look for a super fund’s Letter of compliance on their website, or
- Contact the fund and ask if it is compliant and offers a MySuper Product
- Keep a record — Keep a record of all your checks.
Keep learning:
Step 4—Review your cash flow
Paying super each payday means you’ll be paying super often, especially if you have employees.
Make sure you plan for frequent super payments:
- Review your weekly or fortnightly cash flow.
- Make sure you have enough funds to cover pay and super each pay or invoicing run.
Tip: Plan for super payments alongside your broader business planning. It can help you work out whether hiring someone is the right decision for your organisation or business before you engage an artist or arts worker.
Step 5—Check your payment processes
Make sure your pay run can include super every time.
Tips for checking your payment processes:
- Check that your software can process super every pay run.
- If you’re using a clearing house, confirm their processing times.
- Run a test pay cycle (most payroll software has a test feature).
- Set reminders or automate super payments within payroll software.
- Set up a process so you will be able to quickly fix any payment errors before the 7-day super payment deadline.
Step 6—Set up a system for keeping records
You need to keep records to show:
- that you asked your employees and eligible independent contractors to choose a super fund
- the super contributions you made.
Keep learning:
What happens if you get it wrong
The Australian Tax Office knows most businesses and organisations want to do the right thing.
If you make an honest mistake and take steps to fix it quickly, you won’t be the focus of their compliance action in the first year.
But paying super – the right amount, and on time – is one of the ways we support sustainable creative careers for artists and arts workers.
It’s also the law. Unpaid and underpaid super can lead to mandatory repayments, which can impact your cash flow, professional reputation, and your ability to run your creative organisation. There can also be financial penalties for getting it wrong.
The ATO has lots of information about getting super right.
Keep learning at the ATO:
More in this section:
About super
Superannuation (or super) is a type of long-term savings for retirement. Businesses and organisations must pay super to their employees and to some independent contractors.
Who gets super
Employers and hirers must pay super for employees and some independent contractors, including certain performers, creatives and arts workers.
Changing to Payday Super
From 1 July 2026, super contributions must be paid at the same time as wages, salary or fees are paid. Follow the steps to get your organisation or business ready for Payday Super.
Making super payments
Once your business or organisation is set up to pay super, follow the steps for getting super payments right for each of your employees and eligible independent contractors.
Getting super — for artists and arts workers
Employers and hirers are responsible for paying super — but there are things you can do to make sure you are informed about your super payments, and ways to boost your own super.
