From 1 July 2026, employers, including those who operate international businesses in Australia, must calculate superannuation based on qualifying earnings (QE) rather than ordinary time earnings (OTE), requiring payroll and reporting updates.
The change affects how both the super guarantee (SG) and super guarantee charge (SGC) are calculated. Qualifying earnings include ordinary hours, certain paid leave, allowances, bonuses, commissions, and some salary sacrifice amounts. Independent contractors paid mainly for labour are also considered employees for SG purposes.
Employers must start reporting QE and super liability for each eligible employee through Single Touch Payroll (STP) from 1 July 2026. Reports lacking both figures by 1 July 2027 will be rejected.
Most employees’ super contributions will remain unchanged, but employers are advised to review pay codes and update payroll software. Additional obligations under awards or enterprise agreements may still require super payments outside QE.
Super contributions must be paid at least quarterly, coinciding with payday reporting, ensuring compliance with the updated SG framework. This adjustment aims to simplify super calculations, align SG and SGC bases, and ensure consistent reporting for employers and employees alike.
Last updated: 9th Apr 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager