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Set Up Qualified Earnings (QE) for Payday Super

Payday Super β€” Step 2

Set up Qualifying Earnings (QE) for Payday Super

Configure how super is calculated for each pay run under Payday Super.

You do not need to create new transaction codes.

When you activate the QE parameter, your existing transaction codes are automatically mapped based on their current "Include Super Calculation" setting. Your only task is to review whether any codes currently included in super calculations should be excluded from QE under the new legislation.

Prerequisite: SSID registration must be completed before STP submissions will process. If not completed, submissions may fail. See the Payday Super Guide Hub β†’

Important: QE reporting should only be activated after FY26 payroll has been finalised. Activating too early may impact STP reporting.

What are Qualifying Earnings?

Qualifying Earnings (QE) are the earnings that super is calculated on for each pay run. From 1 July 2026, QE replaces the traditional OTE model in STP reporting and is used to calculate super each payday.

βœ“ Generally included βœ• Generally excluded
Ordinary hours earnings Reimbursements
Salary and wages Genuine overtime
Allowances Lump sum termination payments
Bonuses and commissions Expense-only allowances
Paid leave
Salary sacrifice super
Labour-based contractor payments

β†’ View ATO guidance on Qualifying Earnings

How automatic mapping works

When you activate the QE parameter, Jobpac automatically sets the "Include in Qualifying Earnings" flag on each transaction code to match its existing "Include Super Calculation" setting.

This means:

  • You do not need to create new transaction codes.
  • You do not need to manually update each code before activating.
  • Codes that were included in super calculations will automatically be included in QE β€” unless you adjust them.

Note: The "Include in Qualifying Earnings" checkbox is visible in Payroll Transaction Definitions before the parameter is turned on, but it has no effect until the parameter is activated. You do not need to action anything until you are ready to go live.

What you need to review

Before activating QE, review whether any transaction codes currently included in your super calculations should be excluded from QE under the new legislation.

This is particularly relevant if your current super calculations include earnings such as genuine overtime or expense reimbursements β€” these should not be included in QE.

For each transaction code that should be excluded from QE, uncheck the "Include in Qualifying Earnings" flag in Payroll Transaction Definitions before or after activating the parameter.

Before you activate QE

Confirm all of the following before setting the parameter:

☐ All FY26 payroll runs are complete
☐ Payroll is reconciled
☐ STP income statement is finalised
☐ Payroll year has been rolled over
☐ Transaction codes reviewed β€” any codes that should not be in QE have been updated

Activate QE in Jobpac

Set Parameter "OZEDI" Position 5 = "Y" after 1 July 2026.

Parameter: OZEDI β€” Position 5 = Y

Once activated, the auto-mapping runs and the "Include in Qualifying Earnings" flag on each transaction code takes effect.

Validate your QE setup

Check QE values in:

  • STP submission files
  • STP2 EMP Gross Values screen (Column AO)

Quick validation check

QE (Column AO) Γ— 12% = Super (Column AP)

You're ready to proceed when:

βœ“ QE parameter is enabled
βœ“ Relevant earnings are included and any exclusions have been applied
βœ“ QE values appear correctly in payroll
βœ“ Super calculations align with QE totals

β†’ Return to the Payday Super Guide Hub to continue

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