Payday super

What it means for you

What is payday super?

In the 2023-24 Federal Budget, the government proposed that employers will need to pay employees’ superannuation guarantee (SG) at the same time as their salary and other wages. This change is proposed to come into effect on 1 July 2026.

Why is the government proposing payday super?

Payday super aims to create a fairer superannuation system for workers and employers and address the issue of unpaid super by giving employees better visibility of their retirement savings.

Unpaid super is not just a problem for workers, it penalises the majority of businesses which do the right thing and also represents significant lost Government revenue and an increased reliance on the Age Pension. The Australian Taxation Office (ATO) estimates that employees were owed $3.4 billion worth of super in 2019-20^*. Payday super can help the ATO detect and recover unpaid super payments.

Australians can also benefit from higher retirement savings as smaller, more frequent super payments can reduce the impact of share market volatility on a worker’s super balance.

“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.”^*

How will it affect employers?

Having SG paid together with salary and other wages can benefit employers by helping to streamline their payroll processes and avoid penalties for late super payments.

Whilst the introduction of payday super will be a significant change, the proposed due date of 1 July 2026 allows employers time to prepare.