From 2026, the Federal Government will require employers to pay superannuation on paydays rather than quarterly. The proposal has received a mixed response from employer organisations, with some welcoming the move and others noting concerns regarding process, efficiency and increased costs.
Employers are currently required to make superannuation contributions on a quarterly basis, while the new plan will require them to be paid every payday (eg weekly, fortnightly or monthly) to ensure that employees receive their superannuation in a more timely manner.
The proposed changes will be introduced from 1 July 2026, giving employers, super funds and payroll providers over three years to prepare.
In a joint statement, Treasurer Jim Chalmers and Minister for Financial Services Stephen Jones said that the shift to "payday super" will benefit both employees and employers. They suggest that "more frequent super payments will make payroll management smoother with fewer liabilities building up on the employer's books" and "will make it easier for employees to keep track of their payments, and harder for them to be exploited by disreputable employers."
The changes are part of the Albanese Government's broader push to improve retirement outcomes for Australians. This also includes increasing the superannuation guarantee incrementally each year until it reaches 12% in 2025.
The ATO will consult closely with industry and stakeholders on these changes in the second half of 2023 to address concerns and ensure a smooth transition.
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