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In May 2023, the Government announced changes to the superannuation guarantee.
On 9 October 2025, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 were introduced, intended to take effect on 1 July 2026. These changes are significant to Australia's superannuation system. These reforms are known as 'payday superannuation'.
Quarterly to payday
The current system allows most businesses to pay employee superannuation contributions quarterly. Under payday superannuation, employers will be required to align its payment of superannuation contributions at the same time as it pays their employees’ wages and salary. The superannuation contributions will generally need to be received in the employee’s super fund within seven (7) business days of their payday.
This will significantly impact businesses’ cash flow that currently pay super payments monthly, or quarterly or where pay cycles are weekly or fortnightly. Currently, if there is a time difference between paying wages and paying super contributions, this provides cashflow to businesses for day-to-day operating expenses.
There will be an increase in administration workload and costs as more frequent payment of superannuation contributions, and businesses will need to ensure that the correct payroll software and systems are in place to ensure real- time calculations and remittance. It should be noted that the Small Business Superannuation Clearing House (SBSCH) is scheduled to be retired from 1 July 2026 and is already closed to new users.
Updated compliance and penalties
The reforms also introduce an updated superannuation guarantee charge (SGC) for employers who do not pay superannuation contributions on time and the full amount. For further information, please see the payday superannuation factsheet prepared by the Government.
Businesses should consider the following steps
Given the changes and potential cash flow pressures, businesses should consider the following steps and proactive planning:
Cash flow planning the business may need to adjust its budgeting to account for moving away from quarterly super contributions.
Review payroll systems to ensure current payroll software will be payday superannuation compliant and plan to transition away from the SBSCH (if applicable) before its closure.
Benefits of payday superannuation for businesses
Whilst payday superannuation will allow employees to receive their superannuation regularly, and that is less likely to be unpaid superannuation, there are benefits to businesses as well:
Improve cash flow management through smaller, regular superannuation payments, which the business can manage easier than larger quarterly amounts, which could assist with budgeting more effectively.
Potentially reduce penalties as the regular superannuation cycle may assist the business to avoid falling behind and accumulating large, unmanageable liabilities.
Allow businesses to streamline its payroll processes by integrating superannuation payments into their payroll rather than a separate quarterly deadline.
The payday superannuation reforms are intended to reduce unpaid superannuation for employees and, therefore, hopefully assist with better outcomes for employees in their retirement. It should also make it easier for the ATO to detect and recover unpaid superannuation before the amount becomes significant.
ATO’s first year compliance approach
The ATO has published a draft practical compliance guideline outlining its planned approach to the Payday Superannuation reforms for the Financial Year 2026 to 2027. It appears that the ATO intends to focus on education and assistance for employers making genuine efforts to comply (low risk), while prioritising enforcement against high-risk employers who intentionally or repeatedly fail to meet their obligations.
For further information regarding payday superannuation, businesses should visit the ATO website:
