From July 1, 2026, all Australian businesses will be required to pay their employees' superannuation on the same day as salaries. This means employer super contributions must reach the employee's super fund within seven days of payday. The Australian Taxation Office (ATO) has encouraged early adoption, so some workers may already see changes.
The Problem of Unpaid Super
Underpayment or non-payment of superannuation has become a growing issue. The ATO recently reported that approximately A$6 billion in superannuation remains unpaid to workers. The new payday super rules aim to address this.
What Changes from July 1?
Currently, most businesses pay super quarterly, with funds due 28 days after the quarter ends. Under payday super, payments must be made with each salary cycle. This makes it easier for employees to verify contributions and reduces delays.
Financial Benefits for Workers
Even without unpaid super, workers benefit from more frequent contributions, which allow investments to grow faster. The federal government estimates an average 25-year-old could gain around $6,000 in today's dollars. The Super Members Council projects a typical worker could be $9,400 better off in retirement.
Why Change Was Needed
Younger, lower-income, insecure, and migrant workers are disproportionately affected by lost super. Half of workers earning under $25,000 annually have unpaid super. Industries like construction, retail, and hospitality are most affected, but large corporations like Woolworths and Coles have also underpaid.
Help for Employers
Employers must adjust to payday super, which impacts cash flow. The ATO provides checklists and videos to assist. While over half of employers still pay quarterly, the ATO will focus on education over punishment in the coming year.
Help for Employees
Employees should ensure their employer has correct super details, regularly check balances against payslips, and report errors in writing. The ATO website offers easy-to-read information for employees.
