What is Payday Super?

Payday super is the federal government’s proposed legislation to make employers pay their employees’ super at the same time as their wages or salary. The proposed start date for payday superannuation is 1 July 2026.

As at 21 October 2025, this law has not passed through parliament, but it is anticipated that it will become legislated as drafted. This reform, known as Payday Super, replaces the current quarterly payment system and aims to:

• Improve retirement outcomes through faster compounding.
• Reduce unpaid super.
• Increase transparency and accountability for both employers and employees.

Current vs New System

• Currently, employers must pay SG contributions quarterly, by the 28th day after each quarter ends.
• From 1 July 2026, SG contributions must be received by the employee’s super fund within 7 business days of each Qualifying Earnings (QE) Day – the day wages are paid.

Key Employer Obligations

From 1 July 2026, employers must:

1. Accurately calculate SG contributions based on each employee’s Qualifying Earnings (QE) – which includes:
2. Ordinary Time Earnings (OTE)
3. Salary sacrifice contributions
4. Other amounts currently included in SG calculations
5. Pay super within 7 business days of each payday (QE Day).
6. Ensure compliance with the employee’s chosen super fund. Penalties apply for breaches of fund choice rules.

For new employees, super contributions must be received by their fund within 20 business days of their first payday.

Super Guarantee (SG) Charge Updates

If employers fail to meet their obligations, they may be liable for the updated SG Charge (SGC), which includes:

• Outstanding SG shortfall: Remaining SG after accounting for late contributions (calculations based on QE), plus
• Notional earnings: Daily compounding Interest from day after due date, plus
• Employer’s administrative uplift amount: Additional charge of up to 60% of the shortfall will be added, plus
• Employer’s choice loading (if any): Additional 25% penalty for not complying with fund choice rules.
  

How Can You Prepare for Payday Super?

Employers should begin preparing now to ensure compliance by July 2026:

1. Review payroll and clearing house systems to ensure they support real-time SG payments.
2. Confirm employee fund choices are correctly recorded and followed.
3. Monitor SG payments closely to avoid shortfalls and take advantage of voluntary disclosure options if needed.