On 9 October 2025, the Government introduced two Bills to bring its long-anticipated ‘Payday Super’ policy to life.
From 1 July 2026 employers will need to pay superannuation guarantee (SG) contributions at the same time as wages are paid, rather than pay SG in the current quarterly cycle.
The Payday super changes aim to tackle unpaid and underpaid super by:
- Increasing payment frequency with a view to promote earlier detection and management of unpaid or underpaid super.
- Setting strict payment timeframes. This will require SG contributions to reach the employee’s fund within seven business days of paying wages, or employers otherwise risk incurring the SG charge.
- Introducing new penalties which will provide for stronger administrative sanctions for employers who fail to meet their SG obligations.
While these changes appear to be a win for employees, they will change how many businesses manage payroll and cash flow.
Here are some issues that you should start thinking about and getting advice around now:
Payroll system capability
Can your software process super contributions with each pay run?
Cash flow impact
Moving from quarterly to real-time payments means less time between payments leaving your account – how will this affect your cashflow on an ongoing basis?
Award and Enterprise Agreement alignment
Make sure your payroll frequency and super obligations are consistent with any applicable industrial instrument.
Process Mapping
It’s important to get clear on who’s responsible in your business for triggering, reviewing and reconciling payments.
Payday Super practical guidelines for employers can be found on the ATO website, where fact sheets and checklists are readily available to assist in the transition, which are accessible here.
Get in touch to discuss your options with our team.