What is Payday Super?

Payday super is a new system that changes how employers pay superannuation (super) for their employees. Starting from 1 July 2026, employers will need to pay super on the same day they pay salaries and wages, instead of every three months.

Why is this Change Happening?

The government wants to make sure employees get their super faster. This change aims to reduce the $3.4 billion gap between what employees are owed and what they receive. It will also help employees save more for retirement.

How Will Payday Super Work?

There will be a new 7-day ‘due date’ for contributions to arrive in the employees’ superannuation. This provides time for the movement of funds through the payment system, including clearing houses. There are a few exceptions, like for new employees and small, irregular payments.

Impact on Employers

Employers will need to adjust their cash flow since they will be paying super more frequently. However, this change will help prevent issues if an employer falls behind on payments or becomes insolvent.

Penalties for Late Payments

If employers pay super late, they will face penalties. These penalties include paying the outstanding super amount, interest, and additional charges. The penalties are designed to ensure employers comply with their obligations.

Current Status

Payday super is not yet law, but it is expected to be implemented soon. We will keep you updated on any changes and help you comply with the new requirements.