Albanese Government To Require Employers Make Superannuation Payments On Payday

The Albanese Government has announced a new reform that will require employers to pay superannuation contributions on the same day as employees receive their wages.

The change, set to take effect on 1 July 2026, is designed to ensure workers accumulate more for their retirement while reducing the issue of unpaid superannuation.

The government has released draft legislation for public consultation, which will close on 11 April 2025. The government is seeking feedback from workers, employers, and other stakeholders on the proposed changes.

"Payday super will make it easier for employers to manage their payroll by paying super at the same time as salary and wages," Assistant Treasurer Stephen Jones said.

Currently, employers are obligated to pay superannuation every three months, but this will soon change.

Under the new law, employers will have to pay superannuation on payday, which will directly address the widespread problem of unpaid super.

According to the Australian Taxation Office, AU$5.2 billion in superannuation went unpaid during 2021–22.

A "Game Changer" for Australians

The new system will have frequent payments, allowing the superannuation to start growing earlier. As a result, a 25-year-old worker earning a median salary who currently receives super contributions quarterly could be AU$6,000 richer by the time they retire.

The change is expected to benefit nearly nine million Australians, adding an estimated AU$7,700 to their retirement savings, News.com reported.

The reform will also simplify payroll management for employers. By paying superannuation contribution on payday, businesses can streamline the process, ensuring they meet their obligations more easily. Additionally, the government plans to redesign the Superannuation Guarantee system to better compensate workers for any delays in their super payments.

Employers who fail to meet their superannuation obligations will face higher penalties for repeated offenses.

The Super Members Council has praised the reform, calling it a "game changer." The new laws will allow employees to verify that their superannuation payments are made on time, along with their regular paychecks.