top of page
Search

What You Need to Know About Payday Super (And Why It Matters!)

Updated: Mar 29

Payday-Super-Business-Books-n-BAS

The Australian government has proposed Payday Super, requiring super to be paid with wages from 1 July 2026—but it’s not law yet. Here's what to know!


UPDATE: Treasury has released the exposure draft law and explanatory materials for public consultation. The consultation will close on 11 April 2025.


What is Payday Super?

Currently, super is paid quarterly, making it hard for employees to track contributions. Payday Super would require employers to pay super at the same time as wages, improving transparency and retirement savings.

The goal is to reduce unpaid super, help savings grow faster, and increase compliance.

How Will This Affect Employers?

If passed, businesses must:

  1. Pay super each payday instead of quarterly

  2. Ensure super funds receive contributions within 7 days

  3. Adjust cash flow to manage more frequent payments


What’s in It for Employees?

If introduced, Payday Super could mean:

  1. Faster super payments – No more waiting three months!

  2. Better transparency – Track contributions in real-time.

  3. More retirement savings – Compound interest kicks in sooner.

According to the ATO, unpaid super totals over $5 billion a year. This change aims to fix that.

How Can Employers Prepare?

Step 1: Review payroll – Can your system handle frequent super payments?

Step 2: Upgrade software – Ensure payroll automates super payments.

Step 3: Communicate – Keep employees informed about potential changes.

Step 4: Seek advice – Work with financial experts to stay compliant.

Step 5: Plan for cash flow – Frequent payments may impact your cash flow.


Need help managing payroll & cash flow?


Contact Business Books n BAS today for expert payroll and superannuation guidance. We’ll help you stay compliant, streamline your processes, and ensure your business is ready for the change!

The government is finalising its payday super plan and will introduce legislation shortly. As always, we will keep you updated on this measure as more information arises.

bottom of page