What You Need to Know About Payday Super (And Why It Matters!)

The Australian government has proposed Payday Super, requiring super to be paid with wages from 1 July 2026. Here's what to know!

What is Payday Super?

Currently, superannuation is paid quarterly, making it hard for employees to track contributions. Payday Super would require employers to pay super at the same time as wages, improving transparency and retirement savings.

The goal is to reduce unpaid super, help savings grow faster, and increase compliance.

How Will This Affect Employers?

If passed, businesses must:

1. Pay super each payday instead of quarterly

2. Ensure super funds receive contributions within 7 days

3. Adjust cash flow to manage more frequent payments

What’s in It for Employees?

If introduced, Payday Super could mean:

1. Faster super payments: No more waiting three months!

2. Better transparency: Track contributions in real-time.

3. More retirement savings: Compound interest kicks in sooner.

According to the ATO, unpaid super totals over $5 billion a year. This change aims to fix that.

How Can Employers Prepare?

Step 1: Review payroll: Can your system handle frequent super payments?

Step 2: Upgrade software: Ensure payroll automates super payments.

Step 3: Communicate: Keep employees informed about potential changes.

Step 4: Seek advice: Work with financial experts to stay compliant.

Step 5: Plan for cash flow: Frequent payments may impact your cash flow.

Need help managing payroll & cash flow?

Contact Business Books n BAS today for expert payroll and superannuation guidance. We’ll help you stay compliant, streamline your processes, and ensure your business is ready for the change!

On 4 November 2025, the Payday Super legislative package passed the Senate without amendment. The Bills are now awaiting Royal Assent. Payday Super will commence on 1 July 2026 for all employers.