The way employers handle superannuation is about to change significantly. The Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 have now passed Parliament and received Royal Assent on 6 November 2025, making the reform official. From 1 July 2026, superannuation contributions will need to be paid on payday rather than quarterly—a move designed to close compliance gaps and strengthen retirement savings for Australian workers.
What Does This Mean for Employers?
Under the new rules, employers must pay Superannuation Guarantee (SG) contributions on each payday. These payments must reach the employee’s super fund within seven business days of wages being paid. This applies to all SG amounts, including ordinary time earnings and salary sacrifice contributions.
Are There Any Exceptions?
Yes. Certain situations allow up to 20 business days for payment, such as the first contribution for a new employee, invalid fund details, or when an employee switches funds. Exceptional circumstances like natural disasters or major system outages may also qualify for extensions. Out-of-cycle payments, such as bonuses or commissions, must be paid by the next regular payday.
Changes to the Superannuation Guarantee Charge
The Superannuation Guarantee Charge (SGC) framework will be updated to align with payday timing. Late-payment offsets will no longer apply for shortfalls after 1 July 2026, and penalties will be calculated on a per-payday basis. This means compliance will be monitored more closely, and errors could become costly if not addressed promptly.
Why Is This Reform Important?
The reform aims to address the estimated $6 billion super gap caused by late or missing contributions. It gives employees real-time visibility of their super payments, reduces the risk of wage theft, and improves trust between employers and staff. For businesses, it’s an opportunity to demonstrate transparency and compliance.
How to Prepare Your Business
Start planning now. Update your payroll systems to calculate and process SG contributions per payday. Work with your clearing house and software provider to ensure they’re ready for the change—leading platforms like Xero and MYOB are already developing Payday Super functionality. Train your team on new processes and review cash flow forecasts to accommodate more frequent payments.
ATO’s Compliance Approach
The ATO has released draft guidance outlining a risk-based compliance approach for the first year (July 2026 – June 2027). Employers acting in good faith and fixing errors promptly will be treated more leniently, but preparation is key to avoiding penalties.
What Should You Do Now?
Don’t wait until July 2026. Begin aligning super payments with paydays ahead of the deadline and get in contact with our team if you have any questions regarding the pay day super changes.
Disclaimer
This article is intended for general informational purposes only and does not constitute financial, legal, or tax advice. Employers should seek professional guidance tailored to their specific circumstances and monitor legislative updates to ensure compliance with any future changes.
