The Albanese Government will require super to be paid on payday to protect and grow the retirement incomes of millions of Australians.
The Government is releasing draft legislation to implement this reform which will ensure workers earn more, keep more of what they earn, and retire with more as well.
From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.
This will tackle the scourge of unpaid super directly. While most employers do the right thing, the Australian Taxation Office estimates $5.2 billion worth of super went unpaid in 2021–22.
Payday super will make it easier for employers to manage their payroll by paying super at the same time as salary and wages. The new law will also streamline the way super is paid by employers to make it easier to meet their obligations.
The Superannuation Guarantee charge is being redesigned so that workers are fully compensated for any delay in receiving their super. Employers will also be prompted to rectify unpaid super quickly and face increasing penalties for longer, larger and repeated failures.
This change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers, in line with the objective of super.
By switching to payday super, a 25‑year‑old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement.
The Government invites submissions on the draft legislation with consultation closing on 11 April 2025.
For more information on the public consultation process, visit the Treasury website. Submissions can be made to paydaysuper@treasury.gov.au.