From 1 July 2026, major reforms to superannuation in Australia will take effect under the Federal Government’s new Payday Super system. These changes will require employers to pay superannuation contributions at the same time as wages or salaries, rather than quarterly.
The goal of the reform is simple – to ensure employees receive their super on time and reduce the growing amount of unpaid super across Australia.
Why the Change?
According to the Australian Taxation Office (ATO), unpaid superannuation totalled more than $6.2 billion in 2022–23 — affecting nearly one in four workers. The Payday Super reforms aim to close this gap by making super payments more frequent and transparent.
Under the current Superannuation Guarantee (SG) rules, employers must pay 12% of an employee’s ordinary time earnings (OTE) to their nominated fund within 28 days of each quarter’s end. Failing to do so can result in SG charges, penalties, and additional interest.
What’s Changing Under Payday Super?
From 1 July 2026, employers will need to:
- Pay employee super on each payday rather than quarterly.
- Ensure payments are received by the employee’s fund within seven business days.
- Use updated digital payroll and accounting systems that meet new ATO reporting standards.
- These changes will modernise the super system, reduce underpayment risks, and give employees faster access to their retirement savings.
How Businesses Can Prepare
While the changes are designed to benefit employees, they may present cash flow challenges for smaller businesses that are used to quarterly payments. To prepare, employers should:
- Review their payroll software and ensure it supports Payday Super payments.
- Update budgeting and cash flow management to handle more frequent super payments.
- Work with their accountant or bookkeeper to ensure full compliance with the new ATO requirements.
- The new system also brings some relief – late super payments will remain tax-deductible, though penalties will still apply for non-compliance.
Get Expert Help from Master Accounting
At Master Accounting, we help Gold Coast businesses navigate complex superannuation laws in Australia. Our team can assist with payroll setup, ATO compliance, and cash flow planning to ensure your business is ready for Payday Super in 2026.
Contact us today for practical advice and tailored accounting support for your business.