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Payday Super: New Super Rule Coming in 2026 to Ensure Super Is Paid on Time
The Australian Government has introduced a significant reform that will reshape how superannuation contributions are made — the Payday Superannuation system.
The Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 aim to ensure that employees receive their super at the same time as their wages.
This change is designed to strengthen Australia’s retirement system, helping millions of Australians grow their super balances faster and retire with greater financial security.
⚙️ What’s Changing
Under the new Payday Super laws, employers will be required to pay their employees’ superannuation contributions at the same time as salary and wages — rather than quarterly as under the current system.
Key features include:
- Employers must ensure super contributions are received by the employee’s fund within seven business days of payday.
- Contributions received after this period — or not made at all — will result in a Superannuation Guarantee (SG) shortfall, and the employer will be liable for an SG charge.
- Employers can reduce this charge by making late contributions before the ATO issues an official SG charge assessment.
- However, the SG charge can’t be reduced to zero because it also includes extra admin and notional interest amounts.
In short, employers who pay on time will avoid penalties — while those who don’t will face stricter compliance consequences.
📅 When It Starts
The Payday Superannuation laws will take effect from 1 July 2026.
From this date onwards, all SG contributions related to wages paid on or after this day will need to comply with the new requirements.
🧭 Payday Super – ATO’s First-Year Compliance Approach
The ATO has released a Draft Practical Compliance Guideline (PCG 2025/D5) outlining how it will manage compliance during the first year of Payday Super (1 July 2026 – 30 June 2027).
Here’s how the ATO plans to approach it:
- The ATO will focus its compliance resources on higher-risk employers who fail to make timely or adequate contributions.
- Employers who make genuine efforts to comply — even if payments are slightly delayed due to system issues or fund rejections — will be considered low-risk.
- Employers who continue to pay quarterly and ignore the new requirements may be subject to review or penalties.
In essence, the ATO’s first-year approach recognises that employers will need time to adjust systems and processes — but expects consistent improvement toward full compliance.
Unsure how Payday Super will affect your business? Talk to our team today to prepare your payroll systems for the 1 July 2026 changes.
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