Australia’s proposed Payday Super legislation marks a major change in how superannuation is managed. Set to take effect in July 2026, the law will require employers to pay super on the same day as wages, rather than quarterly. This move aims to ensure workers receive their super entitlements faster, addressing issues of unpaid or delayed contributions.
Why This Matters
Currently, super payments are made quarterly, allowing some employers to delay or withhold contributions. This has led to billions in unpaid super each year. The new system will help close that gap, especially benefiting younger and lower-income workers whose retirement savings are most impacted by delayed contributions.
Compliance and Payroll Challenges
With Payday Super, payroll systems must be updated to process real-time payments to super funds. Employers need to be ready for this increased compliance responsibility, as penalties for non-compliance will be steep.
Embracing Technology
To comply with the legislation, businesses may need to upgrade their payroll technology, streamlining processes to support timely super payments and improve overall payroll efficiency.
For payroll professionals, this shift brings both challenges and opportunities. By staying ahead of the changes, they can ensure compliance, protect employee entitlements, and enhance the overall value of payroll within their organisation.
