It is planned that from 1 July 2026, Payday Super will require Employers to make Superannuation Guarantee Contributions on the same date that they make salary/wage payments to their employees. Employers must transfer super contributions to employees' super funds, so that they are loaded to member records within seven calendar days of every payday. Rather than the current quarterly minimum remittance frequency, and failure to do so will result in penalties.
In the 2023-24 Budget, the Government announced a reform to align employer’s payment of Super Guarantee (SG) contributions with the same time as paying their wages or salaries. This approach ensures that super payments are made promptly and align with each pay cycle, rather than being delayed until quarterly deadlines. Payday Super aims to enhance transparency and trust between employers and employees, making it easier for workers to track their super contributions and ensure compliance with legal obligations. It benefits employees by helping their retirement savings grow steadily, thanks to more frequent contributions and the power of compounding interest.
The non-payment and underpayment of superannuation by employers risks the retirement income of millions of Australians. Non-payment and underpayment of superannuation is equivalent to wage theft and has significant impacts on retirement outcomes. Payday Super has been introduced to strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers by tackling unpaid superannuation.
Although the legislation is still in the consultation phase, the Government is still committed to introducing Payday Super from 1 July 2026.
To prepare for Payday Super, employers need to take several key steps:
These steps will help to ensure a smooth transition to the new Payday Super system.
By leveraging our expertise and resources, you can navigate the transition to Payday Super more smoothly and ensure you remain compliant with the new legislation.
Equip Super can play a crucial role in helping you prepare for Payday Super. Here are some ways we can assist:
We can provide expert advice on the new requirements, helping you understand your obligations and the steps needed to comply.
We can assist with guidance on updating and integrating payroll systems to ensure they can handle the more frequent superannuation payments.
We can offer training sessions for HR and payroll staff to ensure they are well-versed in the new processes and requirements.
We are happy to work with you to help facilitate compliance requirements, supporting you to ensure that super contributions are made on time and in accordance with the new regulations.
We can help provide communications for you to pass to your employees, ensuring they understand how the new system changes will benefit them and what to expect.
Payday Super is a Federal Government initiative requiring employers to pay their employees' superannuation contributions at the same time as their wages.
It aims to address unpaid and underpaid superannuation, which has cost millions of workers billions of dollars annually.
The Government is aiming to commence Payday Super on July 1, 2026. The Payday Super legislation is yet to be introduced into Parliament. Draft legislation went through a period of stakeholder consultation that closed in April 2025.
Employers must transfer super contributions to employees' super funds within seven calendar days of payday, according to the draft legislation. This will prove most challenging in weeks with several public holidays, so super funds that can process contributions promptly will be valuable to ensure compliance.
Non-compliance will result in penalties, including the Super Guarantee Charge (SGC), daily interest, and administrative uplift charges.
Yes, exceptions include irregular payments and contributions for new hires, employers have until the end of the 21st calendar day after payday to allow additional onboarding time. Or other exceptional circumstances, like natural disasters.
Employers will need to align super contributions with payroll cycles, which may require updates to payroll software and processes.
It aligns payroll requirements, reduces the risk of missed deadlines, helps employees see that their employer is looking after them and making their required super contributions, and will help reinforce Employers of choice.
Yes, the ATO will offer legislative updates and guidance as the implementation date approaches.
Employers should review their payroll systems, reconcile data between super reports and payroll, and plan for cash flow adjustments.
All employers will be required to implement the Payday reform, when passed, which mandates that Super Guarantee (SG) contributions must be paid for their employees with every pay cycle.
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