From 1 July 2026, the way super is paid will change. Super contributions will need to be paid at the same time as wages, not quarterly.
This reform – often called payday super – is designed to fix a long‑standing problem in Australia’s super system: workers not being paid the super they’re owed.
Over the past five years, Australians have missed out on $24.4 billion in unpaid super, affecting millions of workers. It’s a problem that will put real pressure on household finances in retirement by denying individual workers tens of thousands of extra savings for life after work.
Payday super laws were promised back in 2023 and employers, payroll providers and the super system have had 3 years to prepare. Many businesses are also already operating this way. In fact, around 80% of large businesses and about half of small and medium employers already pay super monthly or more frequently.
For the many thousands of employers who already pay super with wages – which means they already factor their super obligations into their weekly, fortnightly or monthly cash-flow cycles – payday super helps level the playing field with competing businesses. Now all businesses will need to pay super on the same cycle.
A one‑year grace period for employers doing the right thing
From 1 July 2026 the key changes coming are:
Super will need to hit employee super balances within 7 days from wages being paid
The basis for calculating the payment has been widened to what’s called ‘qualifying earnings’
There are also some process changes including the means by which super is paid, that stakeholders should be aware of
To help businesses adjust, the Government has built in a 12‑month grace period from 1 July 2026.
This means employers who take reasonable steps to comply will not be penalised if super payments are delayed because of factors genuinely outside their control – for example, processing errors or timing issues beyond the employer’s influence.
The focus is on helping employers transition smoothly, not on catching out businesses that are trying to comply.
Practical steps to get ready for payday super
Here are some sensible actions employers can take now to avoid a last‑minute rush.
1. Check your payroll software: Contact your payroll provider to confirm when payday super functionality will be switched on, and what changes (if any) you’ll need to make. Don’t assume it will happen automatically.
2. Understand the cash‑flow change: Super will move from quarterly payments to every pay cycle. For businesses with weekly or fortnightly payrolls, this means paying smaller amounts more often. Reviewing cash‑flow settings now will help avoid pressure later.
3. Clean up employee super details: Incorrect super fund details can cause payments to bounce back. Make sure employee fund information is up to date so contributions aren’t delayed.
4. Talk to your accountant or adviser: The earnings base for calculating super is changing. A quick check with an adviser can ensure payroll calculations will be compliant from day one.
5. Plan for the closure of the Small Business Superannuation Clearing House: The ATO’s Small Business Superannuation Clearing House will close on 1 July 2026. If you’re using it, you’ll need to move to an alternative arrangement before then.
6. Communicate with your staff: Employees may notice super appearing with every payslip. Let them know what’s changing, and encourage them to check their fund details.
A reform that supports good employers
Payday super is about paying super when it’s earned. It helps employees build better retirement savings and gives employers greater clarity and consistency.
For most businesses, this change won’t be as disruptive as it might seem – especially given the long lead time, existing payroll practices across the economy, and the grace period for employers acting in good faith.
Preparing now means less stress later – and helps ensure super works the way it’s meant to, for employees and employers alike.
Want information about payday super for employees? Read more here.
