What is Payday Super?
Payday Super is a Federal Government initiative designed to improve economic outlook and financial independence of up to 9 million Australians when they retire.
According to government estimates, 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5% better off at retirement.1
While the legislation has yet to pass parliament, Payday Super is set to start from 1 July 2026. So, it’s important to understand the proposed changes and what you can do now to prepare your business.
What does Payday Super mean for employers?
Employers must pay their employees’ super at the same time as their salary or wages.
Super contributions must be in an employee’s super account within 7 calendar days of payday. There are limited exceptions, including new starters and small or irregular payments.
Super funds have 3 business days to allocate or return contributions.
Employers will be able to show employees their existing ‘stapled’ fund during their on-boarding as part of the choice of fund process.
The ATO’s Small Business Superannuation Clearing House will close from 1 July 2026.
Where employers fail to pay contributions in full and on time, they are liable for the Super Guarantee Charge (SGC).
- The SGC will become tax deductible (it is currently non-deductible) and the current $20 per person per quarter charge will change to a percentage of the shortfall, with the percentage being reduced for voluntary disclosures.
- The SG shortfall will incur daily interest calculated at the general interest charge rate on a compounding basis.
- Other charges may apply including an administrative ‘uplift’ charge, or additional penalties if the full amount is not paid within 28 days of the notice of assessment.
Getting ready for Payday Super
While the proposed Payday Super start date is still more than a year away, there are things you should consider now to help your business be ready from day one:
How will your current processes and payroll software respond to more frequent super contributions for both regular and irregular payment schedules?
How will aligning super contributions to payroll affect your business’s cash flow?
Does your data reconcile between your super reports and what is shown in payroll (STP requires you to report an employee’s OTE and their total super liability)?
How easily will you be able to make changes to your current data file, if required?
Will you be ready for the final quarter’s payment for the year ending June 2026, which will be paid in July 2026?
Employer FAQs: Payday Super
Here’s a list of frequently asked questions to help you stay on top of your super obligations ahead of this new legislative change.
We’re here to help
As one of Australia’s largest super funds, we have the experience and expertise to support you and your business through the changes you need to make to be ready for Payday Super.
We’ll continue to keep you updated with all you need know and do for Payday Super as legislation passes through parliament.
Our dedicated team of employer specialists can help
Have a Relationship Manager?
Speak with them today to discuss your Payday Super questions.
Considering paying super from your payroll?
Consider Beam,4 a payroll integrated and compliant super payment tech solution. Learn more about Beam.