From 1 July 2026, Australia will introduce a major change to the superannuation system. Employers will need to pay superannuation at the same time they pay wages, rather than quarterly.
The government refers to this reform as Payday Super. The change aims to ensure employees receive their super contributions sooner and to reduce the amount of unpaid super across the country.
What is changing?
At the moment, employers must pay superannuation contributions at least quarterly.
From July 2026, employers will need to pay super contributions on or before each payday.
When an employer processes wages through payroll, they will also need to send the corresponding super contribution to the employee’s super fund.
This change will allow employees to see their super contributions sooner and track them more easily.
Why the government is introducing Payday Super
Each year, billions of dollars in superannuation remain unpaid due to late payments, mistakes, or non-compliance.
Payday Super aims to address this issue by linking super payments directly to payroll. This approach will make it easier for employees to track their contributions and for the Australian Taxation Office to detect unpaid super earlier.
Employees will also benefit because their super contributions will reach their funds sooner and start earning investment returns earlier.
What this means for employers
Many businesses will need to adjust payroll processes and cash flow planning.
Employers will need to ensure they:
• calculate super contributions each pay cycle
• process super payments at the same time as wages
• review payroll software to confirm it supports more frequent super payments
• plan cash flow to accommodate regular super payments
Most modern payroll systems already support automated super payments, which should help businesses manage the transition.
Penalties for late super
If an employer pays super late, they may need to pay the Superannuation Guarantee Charge (SGC).
The SGC can include:
• the unpaid super amount
• interest on the outstanding amount
• an administration fee
• loss of the tax deduction for the super contribution
With super paid every payday, the Australian Taxation Office will likely identify late payments much sooner.
About Payday Super – Superannuation Changes | Australian Taxation Office
Preparing for the change
Although Payday Super will not begin until 1 July 2026, employers should start preparing now.
Businesses may wish to review their payroll systems, update internal processes, and plan their cash flow to ensure they can meet the new requirements.
Preparing early will make the transition smoother and reduce the risk of compliance issues once the changes begin.
Need help preparing for Payday Super?
If you run a business and would like help reviewing your payroll processes, our team can assist.
We can help you review your payroll setup, super payment processes, and software to ensure your business is ready for the upcoming Payday Super changes.
If you would like support preparing for these changes, please contact our team.