Great news this week – parliament has passed payday super laws. This marked a monumental moment for Australian workers as the long-awaited update has passed through parliament. This reform is more than just a policy win — it’s a gamechanger for the financial futures of millions of Australians.
Wait a minute… what was the problem with super paid quarterly?
Currently, employers only needed to pay super four times a year. That makes it harder for businesses to manage payments, leading to errors and incorrect payments. Quarterly payments also mean the amount of super to be paid builds up each quarter, making it harder to manage cash flows and sometimes leading to underpayments or non-payments of super. And for employees, quarterly payments make it more difficult to check if the super had been paid correctly.
For years, unpaid super has quietly drained the retirement savings of hardworking Australians. In 2022–23 alone, 3.3 million Australians missed out on a staggering $5.7 billion in superannuation — an average of $1,730 per person. That’s money earned but never received, and over a lifetime, it can leave workers up to $30,000 poorer in retirement.
The impact has been especially harsh on:
- Women, who already retire with 25% less super than men
- Young workers, often in casual or insecure jobs
- Low-income earners, with 1 in 2 earning under $25,000 missing out on super
Aligning super with payment of wages just makes sense – it’s on your payslip each pay cycle, and once in effect, this law will make it easier to track payments to your super fund. That way, you can see your super growing sooner which can allow it more time to grow and for the compound interest to work its magic.
How will payday super help?
The new payday super laws require employers to pay super at the same time as wages, rather than quarterly. It’s a simple, commonsense change that:
- Boosts transparency—workers can see super paid in real time
- Makes underpayments easier to detect and fix
- Helps employers manage cashflow and stay compliant
- Levels the playing field for businesses doing the right thing
- Allows more time for contributions to make a difference in retirement
According to our analysis, being paid super more frequently means it starts compounding sooner. That could mean an extra $7,700 in retirement savings for the average worker.
“This is an historic day which will make a huge difference to help 3.3 million Australians retire with more income to cover the cost of living,” said SMC CEO Misha Schubert. “The passage of payday super laws will help ensure every dollar owed to millions of workers makes it into their super account on time and in full.”
When will the changes kick in?
The laws are set to take effect from 1 July 2026, giving employers time to prepare. But the message is clear: the era of unpaid super is ending, and a fairer, more transparent system is on the way.
