Out-of-cycle qualifying earnings for Payday Super

The ATO has issued a draft legislative instrument LI 2026/D3, Draft Superannuation Guarantee 
(Administration)(Out-of-Cycle Qualifying Earnings) Determination 2026, which outlines when employers 
may receive additional time to make on-time superannuation guarantee (SG) contributions for 
certain out-of-cycle qualifying earnings under the Payday Super rules.

Under the draft instrument, where an employer has an  established payroll schedule and makes a payment  outside the normal pay cycle, the following payments 
may qualify as out-of-cycle earnings:

• Allowances
• Bonuses
• Commissions
• Loadings
• Advance payments, and
• Back payments.

Rather than the standard 7 business day contribution deadline, employers would have until 7 business days after the employee’s next regular payday to make an on-time SG contribution for these payments. The measure is intended to reduce compliance costs by avoiding ad hoc contribution requirements for irregular payments made outside the usual payroll cycle.

However, termination payments will generally not qualify for the extended timeframe where there is no 
later qualifying earnings day for that employee. In those cases, the standard 7 business day deadline 
continues to apply.

More information

• LI 2026/D3