From 1 July 2026, Australia is changing the way superannuation is paid. A new system called Payday Super will require super to be paid at the same time as wages, rather than quarterly.
This change affects both employees and business owners, and understanding it early will help avoid surprises later.
What Is Payday Super?
Currently, employers can pay super once every three months. Under Payday Super, super must be paid each pay cycle—weekly, fortnightly, or monthly—matching payroll.
In short: when wages are paid, super is paid too.
Why Is This Change Being Introduced?
The Government announced Payday Super in the 2023–24 Federal Budget to address unpaid and late super.
The goals are to:
- Reduce unpaid and underpaid super
- Make super easier to track
- Protect employees
- Improve retirement outcomes through earlier investing
For employees, this means super arrives sooner and starts growing earlier.
For business owners, it means clearer rules—but more frequent payments.
How the New System Will Work
Faster Super Payments
From July 2026, employers must ensure super is received by the fund within 7 business days of payday.
This replaces the current quarterly deadlines and increases transparency.
Improved Technology
The super system will also be upgraded to:
- Allow near real-time payments
- Reduce payment errors
- Ensure super goes to the correct fund and member
These upgrades are designed to make compliance simpler and more reliable.
What This Means for Employees
If you are an employee, Payday Super means:
- Super paid regularly, not quarterly
- Easier checking through your super fund or MyGov
- Faster action if payments are missing
- Better long-term growth from earlier contributions
Employees with bonuses or fluctuating income may also benefit from higher total super contributions (explained below).
What This Means for Business Owners
If you own or run a business, Payday Super will require planning and system changes.
Key points to be aware of:
- Super must be paid with each payroll run
- Cash flow planning becomes more important
- Payroll systems must be able to handle frequent payments
- Late payments still attract penalties and interest
The good news is that:
- On-time and late super payments remain tax-deductible
- Only penalties and interest are non-deductible
Early preparation will help reduce stress and compliance risks.
Important Change for High-Income Earners and Bonuses
Another major change affects the Maximum Contribution Base (MCB).
Currently:
- The cap is applied quarterly
From 1 July 2026:
- The cap will apply annually, estimated at $250,000 (based on current limits)
This means:
- Employees with large bonuses or variable income may receive more super
- Business owners paying bonuses will no longer be restricted by quarterly caps
What Should You Do Now?
Employees
- Expect more regular super payments from 2026
- Review your super statements more frequently
- Ask questions early if something doesn’t look right
Business Owners
- Review payroll and super payment processes
- Consider cash flow impacts of more frequent payments
- Speak with your accountant or adviser well before July 2026
Final Thoughts
Payday Super is a significant change—but a positive one. It improves transparency, strengthens retirement savings, and creates a fairer system for employees.
For business owners, early planning is the key to staying compliant and avoiding unnecessary penalties.
If you would like help understanding how Payday Super affects your business or your personal retirement strategy, tailored advice can make the transition smoother and more cost-effective.
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.