Payday Super

With the Treasury Laws Amendment (Payday Superannuation) Bill 2025 having now passed through both houses of the Australian Federal Parliament, from 1 July 2026, the way superannuation is paid in Australia will change. Under the new Payday Super legislation, employers will be 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 ATO is also receiving increased funding to identify underpayments of SG and take appropriate actions.

As your superannuation partner, we’re here to help you prepare for this transition with confidence.

For employees, more frequent super payments 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

The Treasury Laws Amendment (Payday Superannuation) Bill 2025 introduces 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) will close on 1 July 2026²
  

We recommend taking the following steps to ensure a smooth transition:

• Review Payroll Systems: Ensure your payroll software and clearing house can support real-time SG payments. Speak with your provider about system upgrades or integrations.
• Update Employee Super Fund Details: Rejected contributions often stem from outdated fund information. Use tools like the Member Verification Request (MVR) to validate fund details before processing payments.
• Understand Qualifying Earnings: Get familiar with the new QE definition. It’s broader than OTE and includes salary sacrifice and other SG-relevant amounts. Accurate calculations are key to avoiding penalties.
• Monitor Cash Flow: More frequent payments mean tighter cash flow management. Forecast your SG obligations weekly, fortnightly or monthly, depending on your pay cycle.
• Prepare for Compliance: The ATO has released draft guidance outlining its compliance approach for 2026/27. Employers who act in good faith and resolve issues quickly will not be the focus of enforcement.³

We’re committed to supporting you through this change with:

• Employer resources and checklists
• Ongoing education and webinars
• Integration support for payroll systems

Keep an eye on this page for updates on the legislation.

Payday Super is more than a legislative change – it’s a cultural shift in how retirement savings are valued and protected. For employers, it’s an opportunity to demonstrate transparency, responsibility and care for their workforce.

Start preparing now to avoid last-minute disruptions. The earlier you act, the smoother the transition will be.

We’re here to support you through this change. Visit the ATO’s Payday Super page or Treasury Payday Super Package for detailed information.

This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). Plum Super is part of the MLC Super Fund.

The information in this article is current as at November 2025 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your employees’ personal objectives, financial situation or needs. Your employees should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you and your employees consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions about their superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 1300 55 7586 or by searching for the applicable product at plum.com.au