Soon, your boss will have to pay your wages and super at the same time. Here’s how everyone could benefit
- Written by The Conversation
If you have a job in Australia, you’ve probably noticed each of your payslips has a section telling you how much superannuation will be paid alongside your wages.
But while your wages are deposited in your bank account however frequently you receive a payslip – whether that’s weekly, fortnightly or monthly – it’s a different story for your super.
Under current superannuation laws, employers are only required to pay super into an employee’s nominated fund at least four times a year – 28 days after the end of each quarter – although many do pay more regularly.
But that’s set to change. From July 1 2026, new “payday super” rules will require employers to pay super into the employee’s fund within seven days of wages.
This reform was announced in the 2023–24 federal budget, allowing employers, superannuation funds and software providers three years to set up compliant systems. But it hasn’t yet been legislated.
Now, some industry groups are calling for a further delay of up to two years. So, who are these reforms designed to benefit? And does business really need more time to get ready?
Missing or incorrect super
Missing or incorrect super payments present a huge problem for Australia’s retirement system.
The Super Members Council claims one in four Australians are missing out on the correct amount of superannuation contributions.
The Australian Taxation Office (ATO) estimates A$5.2 billion of guaranteed superannuation went unpaid in 2021–22.
This can be due to payroll errors, misclassification under an award or, in extreme cases, non-payment of superannuation as a form of wage theft. All these things can be harder to spot when super is paid less frequently.
Rules only requiring super to be paid quarterly may have been appropriate 30 years ago, in the early days of the superannuation guarantee. Business systems were often not computerised, and wages were often paid in cash.
Times have changed
Payroll systems are now much more sophisticated.
From 2018, the federal government rolled out the single-touch payroll program that requires employers to report wages in real time, including details of superannuation guarantee withheld from an employee’s wages.
The government is already benefiting from the increased automation of data submitted through this system.
Single-touch payroll data helps improve official labour statistics and provides up-to-date income information for employees through the MyGov portal.
Sending real-time data to Centrelink addresses one of the major flaws underpinning the Robodebt scandal, which used an averaging system to estimate fortnightly earnings.
Benefits for employees
In simple terms, the coming changes are basically a change in timing. Payments will be transferred to an employee’s super fund in the same way their wages are transferred directly to their bank account.
Once bedded down, the changes will provide benefits across the board to employees, employers and the government.
Currently, if an employee believes the correct amount of superannuation is not being paid to their fund, they are expected to follow this up directly with the ATO.
Unfortunately, many employees presume the withheld amount shown on the payslip has already been paid into their super account.
Unless a member is actively monitoring their super balance, they may be unaware that the amount shown on their payslip is not being paid into their fund on a timely basis.
Benefits for business
Employers should also benefit from these changes, many of whom already do transfer superannuation when wages are paid.
Currently, superannuation guarantee payments are run on a separate payment cycle to payroll, coinciding with payment of tax liabilities. If payments are on the same cycle as payroll, it should make budgeting easier, and ensure the separate super payment run is not overlooked.
This assumes, of course, that the business is not relying on unpaid superannuation contributions to manage their cash flows elsewhere in the business. If that is the case, payday super changes will help protect the employee if the employer runs into financial difficulties.
The change will also allow the tax office to match deductions and payments in real time to detect fraud – and check that super is actually being paid. This can reduce audit costs and – in the long run – reduce reliance on the aged pension as super account balances improve.
Why wait any longer?
So, with all of these expected benefits, why has the financial services sector this month asked for implementation to be delayed further – by up to two years? The building blocks of the system – electronic payments to transfer funds and the government’s single-touch payroll gateway – are already in place.
One challenge is legislative. Although announced in May 2023, the draft legislation was only released for consultation in March 2025.
The Superannuation Guarantee (Administration) Act 1992 needs extensive amendments to rewrite references to the calculation and payment of the superannuation guarantee charge.
The draft legislation also makes some changes to definitions that may impact on how systems must be set up for payday super. Although not intended to change entitlements, they need to be made accurate in the software.
Still, payday super has the potential to strengthen Australia’s superannuation system, protecting employee contributions and smoothing the payment system for employers. Concerns around its implementation are largely due to the time it has taken for the draft legislation to emerge.
Following the election, the federal government has the numbers to pass this legislation as a matter of priority.
