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Payday Super legislation passes
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A milestone for fairer retirement outcomes

The Australian Parliament has officially passed the Payday Superannuation Legislation, marking a significant reform to the nation’s superannuation system. From 1 July 2026, all employers will be required to deposit their employees’ super into accounts within seven business days of payday.

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

  • Boost retirement savings through more frequent contributions and compound interest.
  • Reduce superannuation underpayments, which currently affect millions of workers.
  • Improve transparency and compliance across the employment landscape.

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
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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
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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.

Important resource to support your business

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