On 9 October 2025 the Treasurer introduced the legislation to give effect to the payday super changes that were announced in the 2023/2024 Budget.  These changes will, if passed, commence on 1 July 2026, and require that all employers must make the superannuation contributions within 7 days of each payday.

The “payday super” legislation changes were first announced in the 2023-24 Budget.  The change, creates “a strong incentive for employers to make super contributions for their employees at the same time as they pay the employee’s qualifying earnings”, according to the explanatory memorandum.

Treasurer Jim Chalmers said “workers should be paid their super at the same time they’re paid their salary and their wages, and that’s exactly what this bill enshrines into law”.

He told Parliament that workers “will benefit from more frequent and earlier super contributions that will grow and compound over their working life”.

“For the average 25-year-old worker’s retirement balance, this is the equivalent of receiving an extra $6,000 in today’s dollars.”

He continued that most unpaid super “is being picked up too late” and the new laws will enable the ATO “to more quickly identify employers not making contributions”.

A second change, to the operation of the Superannuation Guarantee Charge, a penalty that applies for paying superannuation late, is hoped to further incentivise employers to promptly address any superannuation contribution delays or shortfalls, as the alternative is a much bigger penalty charge.

He said the rejigged SGC “will deliver significant consequences for employers that repeatedly fail to pay their workers or let super go unpaid for long periods of time, and it will make sure that workers are accurately compensated for lost earnings if their employer is late in paying their contributions”.

“Employers will no longer need to choose which period their late contribution should count towards or calculate their own liability”, as it will now “all happen automatically”.

What to do now

“While the legislation moves through the Parliament businesses should prepare their systems, rosters and cash flows to be able to comply with the changes from 1 July 2026”, explains ACAPMAs Elisha Radwanowski.

More Information

Here to help

ACAPMA members are reminded that they can access the advice support resources and representation of the ACAPMA Employment Professionals on this issue, or indeed any other employment issue, via employment@acapma.com.au.

HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by contacting the ACAPMA Employment Professionals via employment@acapma.co.au  its free for members. Click here to apply for ACAPMA Membership.

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