When does QE replace OTE?

1 July 2026 — for all employers.

Does QE include overtime?

No. QE still excludes overtime, like OTE.

What about salary sacrifice to a novated lease?

Per current Treasury drafting, salary-sacrificed amounts that would have been OTE if paid in cash are included in QE. Confirm against final ATO mapping table when released.

OTE vs QE: the super earnings base is changing on 1 July 2026

From 1 July 2026, super guarantee is calculated on Qualifying Earnings (QE) instead of Ordinary Time Earnings (OTE). Here's exactly what changes — and why your payroll system needs reconfiguration.

What's changing

From 1 July 2026, the earnings base for the Superannuation Guarantee changes from Ordinary Time Earnings (OTE) to Qualifying Earnings (QE). At the same time, Payday Super kicks in — contributions must reach the employee's fund within 7 calendar days of payday at 12% of QE.

OTE → QE isn't just a rename. QE is a meaningfully broader base. If your payroll system is configured for OTE and you don't update it, you'll under-contribute super, generate Superannuation Guarantee Charge (SGC), and attract ATO enforcement.

What OTE is today

OTE under the SG (Administration) Act 1992 includes ordinary hours worked at standard rate (excluding overtime), over-award payments / allowances / loadings paid during ordinary hours, commissions + bonuses for ordinary work, shift loading where part of ordinary roster, performance bonuses related to ordinary work.

OTE excludes overtime payments, most salary-sacrificed amounts (despite being earnings), reimbursements + expense allowances, and genuine redundancy pay.

What QE will be from 1 July 2026

QE includes everything OTE included PLUS pre-tax salary-sacrifice amounts (whether to super, novated lease, etc.) and some allowances previously excluded.

QE still excludes overtime, reimbursements, genuine redundancy, and some specific lump sums.

Worked example: bonus + salary sacrifice

Employee on $100,000 base + $10,000 bonus + $20,000 salary sacrifice.

Today (OTE basis): $110K OTE × 12% = $13,200 SG. From 1 July 2026 (QE basis): $130K QE × 12% = $15,600 SG. Underpayment if you keep OTE config: $2,400/year per employee plus SGC interest + admin uplift.

Action checklist

Confirm with payroll vendor they support QE from 1 July 2026.
Map earnings codes to QE inclusions/exclusions.
Cash flow forecast — super shifts from quarterly to per-pay.
Review STP configuration — new QE + Super Liability fields.
Communicate with employees — super visible per payslip.
Watch ATO + Treasury final guidance through Q2 2026.