Knowledge
Payday super for construction.
What changed
How does payday super work for builders?
Most coverage treats payday super as a date change. In construction it's a working capital redesign.
Timing
Contributions must be received by the fund within 7 business days of payday. Not sent — received.
Frequency
Every pay run. For a weekly construction payroll that's 52 remittances a year, not four.
Rate
12% of ordinary time earnings, and in construction OTE includes all-purpose allowances.
Consequences
Late contributions attract the payday super charge, calculated on the shortfall plus interest, and it isn't deductible.
Cash flow
The quarterly float is gone. On 45-day progress claim terms you fund roughly six pay runs of super before the claim lands.
Reconciliation
Errors surface weekly instead of quarterly, which is better — as long as something is checking OTE correctly every run.
Payday super questions
When did payday super start?
1 July 2026. From that date, super must reach the employee's fund within 7 business days of each payday.
Does super have to be paid on allowances?
On ordinary time earnings, yes — and construction all-purpose allowances form part of OTE. Excluding them understates super on every single run.
What about overtime?
Overtime is generally not OTE, but many construction agreements define ordinary hours in ways that change the answer. This is exactly where an interpretation engine earns its keep.
How do builders manage the cash flow hit?
Shorten claim cycles, price super properly into labour rates, and get costed labour visible weekly so the funding gap is a known number rather than a surprise. Our calculator gives you the number.
Reviewed August 2026. General information, not tax or financial advice.