From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.
“This simple change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers,” the Hon Jim Chalmers MP and Treasurer said.
“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.”
Mr Chalmers said more frequent super payments will make employers’ payroll management smoother with fewer liabilities building up on their books.
“Payday super will also make it easier for employees to keep track of their payments, and harder for them to be exploited by disreputable employers.
“The change will particularly benefit those in lower paid, casual and insecure work who are more likely to miss out when super is paid less frequently. Women are overrepresented in this group.”
While most employers do the right thing, the Australian Taxation Office (ATO) estimates $3.4 billion worth of super went unpaid in 2019–20.
To further strengthen the system, the ATO will receive additional resourcing to help it detect unpaid super payments earlier and the Government will set enhanced targets for the ATO for the recovery of payments.
Treasury and the ATO will consult closely with industry and stakeholders on these changes in the second half of this year.
The 1 July 2026 start date will provide employers, superannuation funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change.
