Planned to start July 1, 2026, payday super is a change to how super guarantee (SG) payments are made. No matter your super payments situation, there are important details all businesses should consider now.

Announced in May 2023, the Federal Government is changing how businesses make their mandatory super contributions for their employees. From 1 July 2026, you’ll be required to pay your employees’ super at the same time as salary and wages. So no more quarterly SG payments after 1 July 2026, contributions need to be made at the same time as your payroll.

Help your employees awaken their super

Research supporting the switch shows that more frequent contributions put employees 1.5 per cent better off at retirement.

According to the Federal Treasury, people on irregular contracts, lower paid employment or casual work are the most impacted groups by infrequent super contributions by their employers. Unfortunately, this group is overrepresented by women

But you don’t have to wait until 2026 to make the change. You can help your employees retire better with more frequent super contributions. Switching to fortnightly contributions is a great way to care for you and your employees’ retirement plans.

Why is the government making the switch?

While most employers do the right thing, the Australian Taxation Office (ATO) estimates $3.4 billion worth of super went unpaid in 2019–20. These SG underpayments are negatively affecting retirement outcomes for millions of Australians.

Although not finalised by the Federal Government, tougher penalties are expected to be included in the final Payday Super Legislation to combat rising cases of wage theft and unpaid super.

Lead the way with payday (super)

Payday super will have a significant impact on how Australian businesses are paying super, particularly if you’re already struggling to make super contributions on time.

“Getting payroll and super payments right isn’t just a legal obligation, it’s doing the best possible for your people. And this is something that is at the heart of what ART cares and values - helping people awaken their super and to have the best possible retirement,” says Mathew Gilroy, Head of Employer, Platforms and Partnerships at Australian Retirement Trust (ART).

Learn more about partnering with Australian Retirement Trust.