Payday Super

Payday Super is a major change to how superannuation is paid in Australia.  It is a new law that changes when employers must pay superannuation guarantee (SG) contributions.

Starting 1 July 2026, employers must pay super at the same time they pay wages or salary — instead of the old quarterly system where contributions could be delayed up to 3 months.

What’s Changing

Right now:

Employers can make super payments up to once every 3 months.

This often means contributions don’t reach the employees fund until weeks later.

Under Payday Super (from 1 July 2026):

Super must be calculated and paid every pay cycle — e.g., weekly, fortnightly or monthly, depending on how your pay is set up.

The payment needs to reach the super fund within 7 business days after payday.

Why the Change

This reform has a few goals:

Reduce unpaid or late super — which has been a big problem costing workers billions.

Make it easier to track and see super contributions in real time.

Give employees super money more time to grow because it’s paid earlier in the year rather than months later.

What It Means

·         Employers must pay super contributions more often — aligned with each pay run.

·         Super hits employee accounts much sooner (normal processing times still apply).

·         Employers who don’t pay on time can face penalties under updated compliance rules.

A Note for Employers

Business owners need to update payroll systems so they can calculate and send super contributions with every pay cycle. Many employers already do this voluntarily, but under Payday Super it will be required by law.

Directors/Trustees on Wages

·         Will no longer be able to pay their own super by direct transfer.

·         Must pay super through a clearing house, the same as other employees.

·         All SMSF’s will require an Electronic Service Address (ESA) to allow the transfer of the payments through a super portal.