Payday Super is now in effect, changing how and when superannuation guarantee contribution is paid. We outline what’s changed, why it matters, and how we’re supporting our employer clients.
What’s Payday Super?
From 1 July 2026, the way superannuation is paid in Australia has changed. Under the Payday Super legislation, employers are now required to pay Superannuation Guarantee (SG) contributions at the same time as salary and wages, rather than quarterly.
This reform is designed to tackle the $5 billion annual issue of unpaid super1, improve retirement outcomes through faster compounding, and increase transparency and accountability across the workforce. The Australian Taxation Office ATO is also receiving increased funding to identify underpayments of SG and take appropriate actions.
As your superannuation provider, we’re here to help you prepare for this transition with confidence.
What’s changed?
The Treasury Laws Amendment (Payday Superannuation) Act 2025 has introduced several key changes:
- SG contributions must generally be paid within 7 business days of each pay day
- A new definition of Qualifying Earnings (QE) applies to determine the SG obligation, including ordinary time earnings (OTE), salary sacrifice, and other SG-relevant payments
- Employers who don’t comply may face increased SG Charge (SGC) penalties, including daily interest, administrative uplift, and choice loading
- The ATO’s Small Business Superannuation Clearing House (SBSCH) closed on 1 July 2026
Why it matters
For employees, more frequent super contributions mean:
- Earlier compounding of retirement savings
- Greater visibility of contributions
- Reduced risk of super theft
For employers, the change:
- Reduces liability build-up
- Streamlines payroll processes
- Increases compliance pressure
