The Federal Government has introduced legislation to implement Payday Super, a major reform to Australia’s superannuation system. This change will require employers to pay superannuation contributions at the same time as employee salary and wages, instead of quarterly.
When does it start?
From 1 July 2026 (subject to legislation being passed), employers will need to pay super contributions within seven business days of paying wages.
Why change?
The move to Payday Super aims to:
- Reduce unpaid and late super by ensuring contributions are made more regularly.
- Improve transparency for employees who will be able to see payments more quickly through their super fund.
- Boost retirement savings by allowing super contributions to be invested sooner and benefit from compounding growth.
What this means for employers
The shift from quarterly to payday super will bring several practical changes for employers:
- Payroll and system updates: Payroll software and processes will need to handle more frequent super payments and accurate reporting through Single Touch Payroll (STP).
- Cash flow management: Super payments will form part of each pay cycle, requiring closer cash flow planning and potentially new payment schedules.
- Compliance focus: The ATO will have greater visibility of payment timing.
How to prepare
Although Payday Super is not yet law, it’s important to start preparing early. Employers should:
- Reviewing payroll systems to ensure they can handle more frequent payments
- Engage with payroll providers and super funds to confirm readiness.
- Assess cash flow impacts and update budgets accordingly.
- Monitor ATO and legislative updates as the 1 July 2026 start date approaches
Get Ready for Change
Payday Super represents one of the most significant updates to employer obligations in years. Early preparation will be key to ensuring a smooth transition, ongoing compliance, and minimal disruption to your business.
If you would like support in understanding how Payday Super will affect your business or need assistance reviewing payroll systems and cash flow planning, please contact our team. We can help guide you through the process and help ensure you’re ready for the July 2026 changes.
