Employers to Pay Super on Payday: What the New Rules Mean for You

Starting 1 July 2026, Australian employers will be required to pay superannuation contributions on payday, rather than quarterly. The reform — known as “Payday Super” — is designed to make super contributions more timely, transparent, and fair for workers across the country.

Why the Change?

Under current laws, employers can wait up to three months before transferring superannuation to employees’ funds. This lag has led to billions in unpaid or delayed super payments, leaving workers missing out on investment earnings and compounding growth.

The government’s Payday Super initiative aims to close that gap. By aligning super payments with regular pay cycles, employees will see their super contributions appear in real time — improving trust, visibility, and long-term retirement savings.

What Employers Need to Know

From 1 July 2026, employers must ensure:

• Super is paid on the same day as wages or salary.

• Contributions are received by the employee’s super fund within seven days of each payday.

• Payroll systems are updated to handle more frequent payments.

The Small Business Superannuation Clearing House (SBSCH) will also close from 1 July 2026, so businesses that use it will need to transition to alternative clearing or direct payment systems.

Preparing for the Change

The ATO and Treasury are encouraging businesses to start planning now. Key steps include:

1. Update payroll software – Confirm that your systems can automatically calculate and pay super each pay cycle.

2. Review cash flow – Paying super more often means funds leave the business sooner, so plan for the financial impact.

3. Communicate with staff and providers – Make sure your employees, accountants, and super clearing houses understand the new process.

What This Means for Employees

For workers, Payday Super brings real benefits. More frequent payments mean contributions start earning investment returns sooner. It also helps employees track whether their super is being paid correctly, reducing the risk of unpaid entitlements.

The Bigger Picture

Treasury estimates that millions of Australians lose out on thousands of dollars in retirement savings due to delayed or missing super. Payday Super is part of a broader effort to strengthen the superannuation system, improve fairness, and make sure every dollar earned today counts towards tomorrow.