Skip to main content

We use cookies to better deliver personalised content. Read about how it works.

Search aware.com.au

Suggestions

Payday Super legislation 1 July 2026

Retire couple laughing

Payday Super reforms are designed to support fairer retirement outcomes

From 1 July 2026, employers will be required to deposit their employees’ SG into their Super Fund accounts within seven business days of payday.

For new employees or payments to a super fund for the first time, employers will have twenty business days from payday for the initial contribution.

This reform will strengthen the retirement income of millions of Australian workers. The superannuation system infrastructure will be improved to allow faster processing and quicker payments.

This reform replaces the current quarterly payment model and is designed to:

  1. Help boost retirement savings through more frequent contributions and compound interest.
  2. Reduce superannuation underpayments, which currently affect millions of workers.
  3. Improve transparency and compliance across the employment landscape.

Take action now before Payday Super starts 1 July 2026.

Why it matters 

Each year, over $5 billion in superannuation goes unpaid, disproportionately affecting young workers, women, migrants, and those in casual or insecure employment. By aligning super payments with payday, the legislation ensures workers receive their entitlements sooner and more reliably.

For example*:

  • A 25-year-old worker could see an extra $6,000 in retirement savings.
  • Recovering unpaid super for a 35-year-old could improve their retirement balance by over $30,000
Payday Super Two Sams

What employers need to know

  • Start Date: 1 July 2026
  • Requirement: Super must be received by the employee’s fund within seven business days of payday.
  • Penalties: Employers failing to comply may face a 60% penalty on the shortfall, plus daily interest.
  • ATO Compliance Approach: The ATO will adopt a risk-based compliance model, focusing on supporting employers who act in good faith during the transition
Mature lady working from desk

Support for Transition

Industry bodies, payroll providers, and the ATO are working together to ensure a smooth transition. Employers are encouraged to begin preparing now by reviewing payroll systems and engaging with their superannuation clearing services.

Get Payday Super Ready with our Employer Checklist

Important resource to support your business

To help you stay informed with upcoming changes, here are some important resources relating to Payday Superannuation:

General information only: This is general information and doesn’t take account of your business circumstances. It isn’t legal or tax advice. You should consider the ATO guidance and your own professional advice. The ATO is the primary source of Payday Super requirements. ato.gov.au | ato.gov.au

*This example is for illustrative purposes only. It relies on various assumptions. If actual circumstances differ from these assumptions, actual results will be different. Introducing payday super | Treasury Ministers