Payday Superannuation And What It Means For Your Business
On 14 March 2025, the Federal Government introduced the Payday Superannuation legislation, which will require employers to pay superannuation in line with employee pay cycles, replacing the current quarterly payment system.
The changes will come into effect from 1 July 2026, and the Australian Taxation Office (ATO) is expected to enforce the new rules strictly.
Why The Change?
This reform is part of a broader initiative to:
- Improve retirement outcomes for Australian workers
- Address the issue of unpaid or delayed super contributions (“super theft”)
- Give employees better visibility over their super
- Help businesses avoid the buildup of super liabilities
- Align super with modern payroll systems
Key Dates
What’s Changing?
What Does This Mean For Your Business?
You will need to:
- Update your payroll system to support super payments aligned with each pay cycle
- Review and adjust your cash flow forecasting, as contributions will be more frequent
- Plan for the retirement of the ATO’s Small Business Super Clearing House and move to a new provider
- Avoid penalties by ensuring super contributions are paid on time – within 7 days of each payday
Action Steps
- Check with your payroll provider – Ensure they can automate super payments with every pay run
- Update your internal processes – Align your payroll and super schedules
- Talk to your accountant or bookkeeper – Start preparing for the shift early
- Consider switching clearing houses – Evaluate third- party super clearing services
- Stay informed – Monitor updates from the ATO and trusted industry bodies
Helpful Resources
Payday superannuation | Australian Taxation Office
Fair Work Ombudsman – Pay and Entitlements
Final Thoughts
While this change requires some upfront adjustments, Payday Superannuation is a positive step toward greater financial security for employees and streamlined payroll processes for employers. Preparing early will help ensure a smooth transition.
Article By Taylah Obst
Taylah Obst is an Accountant at 360Private, currently completing her CA studies and recently presented with a Certificate of Merit from Chartered Accountants Australia and New Zealand for being in the top 5% of candidates for the Risk and Technology subject.