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PayrollDeanne(Taxicorn)Taxicorn
3 May 2026

G'day @Lay 👋


Yes, one of the many changes for Payday Super is that employers must additionally report QE in STP2. No other fields are changing 😉


There are 2 types of super:


  1. Super Guarantee - the minimum super obligation of every employer, defined in the super legislation: OTE/QE (capped by MCB) x 12% = SG.
  2. Industrial super - defined in industrial instruments such as Awards, Agreements etc. Some Awards may require employers to pay additional industrial super on payments that are not-OTE/not-QE. This is not SG and not capped by the MCB. Agreements may require an employer to pay a higher rate, such as 13%. It depends on what the industrial instrument defines.

The ATO guidance may assist employers to correctly classify payments as QE. It's just an overview, not every payment. Car allowances may be QE or may not be QE. It depends 🤔


Deanne

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KaraATO(Community Support)Community Support
5 May 2026

Hi @Lay,


Just adding to what @payroll_Deanne has already shared about the maximum contribution base (MCB). After 1 July 2026, once an employee earns more qualifying earnings than the MCB, the employer doesn’t need to make further SG contributions for the rest of that financial year. However, they need to confirm any additional obligations under industrial super. 


When an employee reaches the MCB their QE amount reported in STP is capped at the MCB, with any additional amounts under industrial super continue to be reported as Super Liability.


When you’re deciding if you can stop paying the minimum SG contributions for that year under the SG rules, what really matters is checking whether your employee’s qualifying earnings go over the MCB – the rate you pay above the 12% of qualifying earnings, or the fact that you might pay super on things that aren’t QE is not relevant to working this out.


If you'd like specific guidance on allowances in addition to what payroll_Deanne has provided you can reach out to our tailored technical assistance team.

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RE: Under Payday Super, how do qualifying earnings and allowances affect super contributions? | ATO Community