What 'game-changing' Payday Super reforms mean for you

2025    |    2min read

The implementation of Payday Super is set to take effect from 1 July 2026 and will change the way Superannuation Guarantee (SG) contributions are made. Described as a “game-changer” by ASFA CEO Mary Delahunty – this reform aims to strengthen Australia’s superannuation system. But what exactly does it mean for you as an employer?

Here are answers to some of the key questions about Payday Super and its effect on the thousands of employers across the country.

What is Payday Super?

Under the Payday Super measure, employers will be required to make Superannuation Guarantee (SG) contributions to employees at the same time as salary and wages are paid – every pay cycle. This means super payments will be made on an employee’s ‘pay day’ rather than quarterly. Currently, employers are only required to make SG payments quarterly.

What does Payday Super aim to achieve?

Payday Super aims to help approximately 8.9 million employees grow their retirement savings by ensuring they receive their superannuation contributions earlier and more frequently throughout their careers.

Additionally, by ensuring employees receive their contributions more often, the government hopes to reduce the amount of unpaid super.More frequent SG contributions should make it easier for employees to track their entitlements, while also helping employers improve their payroll management and reducing superannuation theft.

What happens if employers fail to pay contributions on time or in full?

Failing to pay super contributions on time can negatively impact an employees retirement savings, while non-payment or underpayment may be considered wage theft.

In any instance where an employer fails to pay their employees’ super contributions in full on pay day, they will be liable for the SG charge, plus an additional admin uplift penalty to cover the cost of monitoring compliance. This charge ensures that employees are fully compensated for the delay in receiving their super, putting them in the same financial position had the contributions been received in full and on time.

The SG charge aims to create more incentive for employers to ensure unpaid contributions are sorted quickly.

What’s next for Payday Super?

On 14 March 2025, Treasury released the draft legislation confirming the intended start date of 1 July 2026. Participants in the process, including Super funds, clearing houses, payment providers, and employers, are invited to provide feedback, with the consultation process closing 11 April 2025.

To view the draft legislation, click here.

If you have questions about how the Payday Super reform will impact your role as an employer, contact our employer support team on 1300 878 737 Monday to Friday, 8:30am to 5:30pm (AEST/AEDT).