Overview

The Federal Government has introduced the Treasury Laws Amendment (Payday Superannuation) Bill 2025, marking one of the most significant changes to Australia’s superannuation system in decades. From 1 July 2026, employers will be required to pay Superannuation Guarantee (SG) contributions on payday, rather than quarterly. This reform aims to strengthen retirement outcomes and reduce unpaid super across the workforce.

Key Changes Under Payday Super

Payment Frequency: SG contributions must be paid at the same time as salary and wages, with funds reaching employees’ super accounts within 7 business days of payday.
Qualifying Earnings (QE): A new concept introduced under the Bill, QE includes ordinary time earnings, salary sacrifice contributions, and other amounts currently counted for SG purposes.
Updated Penalty Framework: Employers who fail to pay on time will face an updated Superannuation Guarantee Charge (SGC), which now includes:
- Individual SG shortfall based on QE
- Notional earnings (interest)
- Administrative uplift (up to 60%)
- Choice loading for non-compliance with fund choice rules
Enhanced Reporting: Employers must report QE and SG liability through Single Touch Payroll (STP), giving the ATO real-time visibility.

Why This Matters

The ATO estimates $5.2 billion in unpaid super annually, disproportionately affecting casual and lower-income workers. Payday Super aims to close this gap, ensuring contributions are made promptly and compounding benefits are maximized for employees.

What Employers Need to Do Now

Although the start date is 1 July 2026, preparation should begin immediately. Here are practical steps to ensure compliance:
1. Review Payroll Systems: Confirm your payroll software can process super contributions on payday and integrate with SuperStream.
2. Update STP Configurations: Ensure accurate reporting of QE and SG liabilities.
3. Assess Cash Flow Impact: More frequent super payments may affect working capital—plan accordingly.
4. Check Employment Contracts: Align pay frequency obligations with the new rules.
5. Engage with Providers: Speak to your clearing house, super funds, and payroll provider about system readiness.

ATO Compliance Approach

The ATO has released Draft PCG 2025/D5, outlining a risk-based compliance framework for the first year:

Low Risk: Employers who make genuine efforts to comply and correct errors promptly.
Medium Risk: Employers who continue quarterly payments or delay corrections.
High Risk: Employers who ignore obligations or fail to act

To receive tailored advice on your super situation, or if you would like to discuss the implications of the new legislation, please reach out to Accru Felsers online or at (02) 8226 1655.