From 1 July 2026, Single Touch Payroll (STP) under Payday Super still reports salaries, wages and PAYG withholding each payday — but you must also report qualifying earnings (QE) and superannuation liability year-to-date for each employee. Lodge STP on or before payday. Get those two fields wrong and your ATO file can disagree with what the fund received.
This guide is specifically about STP fields under Payday Super: what QE is and isn't, how liability differs, the maximum contribution base, SG opt-out certificates, contractors, software readiness, and what bookkeepers and BAS agents check. For the broader Payday Super / Xero employer checklist, see our Payday Super in Xero guide. For payroll and PAYG fundamentals, see our payroll, PAYG and super guide.
What STP still reports under Payday Super
Payday Super did not scrap STP. According to the ATO's Single Touch Payroll reporting under Payday Super guidance (published 27 June 2026), for paydays from 1 July 2026 you still report, each payday:
- salaries and wages
- PAYG withholding
- your superannuation liability (as before — but now tied to the new QE rules)
- and, newly essential for Payday Super STP: qualifying earnings year-to-date
You still lodge STP on or before payday. The practical change is that QE and liability must both be present and consistent with how you calculate and pay SG.
What are qualifying earnings in STP?
Qualifying earnings are the earnings that qualify for the super guarantee. In STP they are reported year-to-date for each employee. The payday increase in YTD QE is what your payroll software uses to calculate the SG for that pay.
In plain English: QE is the earnings base for SG under Payday Super — not a synonym for "gross pay," and not the same as every amount that might attract award super.
What typically counts toward QE
Use your payroll software's QE flags, then sanity-check against ATO guidance. Common inclusions for employees include:
- ordinary hours of work and related ordinary-time pay
- amounts that fall within ordinary time earnings (OTE), such as many paid leave types and allowances that are OTE
- all commissions (QE is broader than OTE here)
- salary-sacrifice amounts that would have been QE if paid as cash
Your software vendor (for example Xero) and the ATO's qualifying-earnings material are the source of truth for edge cases. If an industrial instrument requires super on something that is not QE, that extra belongs in superannuation liability, not in QE.
What is NOT qualifying earnings (do not report as QE)
The ATO is clear that some amounts must not be reported as qualifying earnings. In particular:
- fringe benefits
- expense reimbursements
Reporting those as QE is a classic way to create STP vs fund mismatches: the ATO sees one earnings story while the fund receives contributions calculated (or not) on a different base. Reimbursements and FBT-style amounts belong in the right pay items — not in the QE total.
If you are unsure whether a pay item is QE, do not guess. Fix the pay-item classification once, then re-check YTD QE on the next pay run.
Superannuation liability vs qualifying earnings
These two STP fields work together but mean different things.
Qualifying earnings (YTD) = the earnings base that qualifies for SG.
Superannuation liability (YTD) = the minimum SG payable, and it may also include additional super you owe under an award or enterprise agreement on amounts that are not QE.
ATO example pattern: paid parental leave (or similar) that is not QE but still attracts award/EA super — that additional amount can sit in superannuation liability without being piled into QE.
So:
- QE answers: "What earnings attracted SG under the Payday Super QE rules?"
- Liability answers: "What super (minimum SG plus any extra industrial amounts) have you become liable for YTD?"
If liability is higher than 12% of QE, that can be correct when awards top up non-QE amounts. If liability is wildly out of line with QE and you have no award extras, investigate pay items, rates, and mid-year corrections.
Maximum contribution base (2026–27)
For 2026–27 the ATO maximum contribution base (MCB) is $270,830.
Once an employee's earnings reach that base:
- you do not need further SG for the rest of the financial year
- you can stop increasing YTD QE for STP purposes
- you should keep reporting the MCB amount as YTD QE for the rest of the year
In other words: cap, don't zero. Leaving QE stuck at the MCB figure for the remainder of the year keeps STP consistent with "SG finished for this FY because MCB was reached."
High earners are where bookkeepers most often see odd YTD jumps — review MCB handling when someone approaches the cap mid-year.
SG opt-out certificates and YTD QE
Some employees hold an SG opt-out certificate. How that interacts with YTD QE depends on timing:
- Certificate from the start of the year → YTD QE is reported as $0
- Certificate from mid-year → YTD QE does not change from the start of the period covered by the certificate (you do not keep adding QE for the covered period)
Do not "half apply" an opt-out by zeroing only one pay while leaving prior YTD inflated incorrectly — or by leaving QE growing after the certificate period has started. Align the certificate dates with payroll settings and re-check the YTD QE figure on the first pay after the certificate applies.
Contractors and STP under Payday Super
Independent contractors paid mainly for their labour are employees for super guarantee purposes. That SG obligation is separate from whether you must report them in STP.
Per the ATO STP-under-Payday-Super guidance:
- STP reporting for those contractors is not mandatory
- if you voluntarily report them in STP, the reporting must meet STP requirements from 1 July 2026 — including the QE and liability rules that apply to that reporting
So: SG can be owed even when STP for that person is optional. If you choose to report, do it properly. For classification fundamentals (employee vs contractor in the books), see our employee vs contractor bookkeeping guide. Income-tax or contractor structuring questions beyond BAS-agent scope should go to your tax agent or accountant.
Soft mid-post check-in
If your STP file already feels messy — wrong pay items, YTD QE that does not match how you pay super, or software still stuck on older OTE-only reporting — Girl Friday Australia can help. We are a registered BAS agent, Xero Certified Advisor and Xero Gold Partner, Australia-wide remote, with bookkeeping from $250/month and BAS & IAS from $180/quarter. No lock-in.
Get a free quote or book a discovery call — or call 0404 877 436 / email info@girlfridayaustralia.com.
Xero and payroll software readiness
If your digital service provider has not updated software yet:
- you must still calculate and pay SG on qualifying earnings
- keep records of QE and how you worked out SG
- start reporting QE and liability in STP as soon as you can in 2026–27, with correct year-to-date figures
- you do not need a special "deferral" just because you start mid-year in 2026–27 — start when the software supports it, and bring YTD with you
Transition note (ATO):
- Until 30 June 2027, the ATO still accepts OTE + super liability reporting
- Once you start reporting qualifying earnings, OTE is no longer accepted for that reporting path
- From 1 July 2027, STP missing both QE and superannuation liability risks being rejected, and penalties may apply
Practical takeaway for Xero and other payroll apps: enable QE reporting when your provider supports it, review every earnings pay item's QE flag, confirm SG at 12% on the right base, and lodge STP on payday with both fields populated. Do not flip to QE half-configured — once you start QE, OTE-style reporting is not the fallback.
What bookkeepers and BAS agents check
When Girl Friday reviews payroll for Payday Super STP, we typically walk this checklist:
- Pay-item map — which earnings are flagged as QE; reimbursements and fringe benefits are not in QE
- YTD QE vs pays — does the payday increase match the QE items on that pay slip?
- Superannuation liability YTD — equals minimum SG on QE (subject to MCB), plus any award/EA extras on non-QE amounts
- MCB — employees near $270,830 for 2026–27; YTD QE capped correctly, not zeroed
- Opt-out certificates — dates match settings; YTD QE behaviour matches start-of-year vs mid-year rules
- Contractors paid mainly for labour — SG treated correctly; voluntary STP only if complete and compliant
- Software version / QE enablement — still on OTE-only? Plan the switch; keep QE records either way
- STP lodged on or before payday — with both QE and liability present once you are on the QE path
- Fund vs STP story — contributions paid each payday (within the ATO's Payday Super timing rules) align with liability, so you are not reporting one world and paying another
BAS and IAS work sits beside this: clean payroll feeds cleaner BAS & IAS lodgement. We also support broader bookkeeping and tax-ready books when your accountant needs year-end that matches STP.
Common STP mistakes under Payday Super
Watch for these:
- Reporting reimbursements or fringe benefits as QE
- Inflating QE with overtime or other non-QE amounts that only attract award super (those extras belong in liability)
- Zeroing YTD QE after hitting MCB instead of holding the MCB amount
- Ignoring opt-out certificate timing (start-of-year $0 vs mid-year freeze)
- Assuming contractor STP is mandatory — or voluntary-reporting without meeting STP rules
- Delaying QE reporting indefinitely while also failing to keep QE calculation records
- Switching to QE in software without reviewing pay items first
- Lodging STP after payday, or with liability that does not match how SG was calculated
Frequently asked questions
Do I still lodge STP every payday under Payday Super?
Yes. STP continues each payday for salaries/wages, PAYG withholding and super liability, and for paydays from 1 July 2026 you must include qualifying earnings and superannuation liability (YTD). Lodge on or before payday.
Is qualifying earnings the same as ordinary time earnings?
No. QE builds on OTE concepts but is not identical — for example, all commissions sit in QE. Until 30 June 2027 the ATO may still accept OTE + liability reporting, but once you start reporting QE, OTE reporting is no longer accepted. From 1 July 2027, missing QE and liability risks rejection and penalties.
What is the maximum contribution base for 2026–27?
$270,830. After an employee reaches it, no further SG is required for the rest of that financial year. Keep reporting the MCB amount as YTD QE for the rest of the year rather than dropping QE to zero.
What if my payroll software is not ready for QE fields?
Still calculate and pay SG on QE, keep records, and start STP QE + liability reporting as soon as your software supports it during 2026–27 (with YTD). You do not need a separate deferral just to start mid-year.
Do I have to report labour-hire style contractors in STP?
Contractors paid mainly for labour are employees for SG purposes. STP reporting for those contractors is not mandatory; if you report voluntarily, you must meet STP requirements from 1 July 2026.
How does an SG opt-out certificate change YTD qualifying earnings?
Start of year: report YTD QE as $0. Mid-year: YTD QE does not change from the start of the period covered by the certificate. Align certificate dates with payroll settings.
Can Girl Friday help fix messy STP and payroll in Xero?
Yes. As a registered BAS agent and Xero Gold Partner we review pay items, QE flags, liability, MCB and lodgement cadence — then keep the books tidy for BAS. Get a quote or contact us.
Get STP and payroll right — then keep the books calm
Payday Super made paying SG a payday job. STP under Payday Super makes reporting a payday job too — with qualifying earnings and superannuation liability as the two fields that keep the ATO, your software and the fund in the same story.
If you want a practical review of pay items, YTD QE, liability and Xero readiness — without jargon and without a lock-in contract — Girl Friday Australia is ready. Bookkeeping from $250/month, BAS & IAS from $180/quarter, Australia-wide remote, 20+ years in the game.
Get a free quote · Start the conversation · 0404 877 436 · info@girlfridayaustralia.com