Say Hello to Payday Super

Millions of Australians’ retirement incomes will increase as a result of the Albanese Government’s requirement that super be paid on payday.

The government has announced that from July 1, 2026, all companies will need to pay worker’s superannuation at the same time they pay them which means companies will no longer be able to pay superannuation on a quarterly basis.

Government to Introduce Employer Superannuation Payday Requirements

Employers must pay their employees’ superannuation at the same time as their salary and earnings beginning on July 1, 2026.

This straightforward adjustment will make Australia’s superannuation system stronger and assist in providing more Australian workers with a more dignified retirement.

A 25-year-old median income person who presently receives their superannuation quarterly and their salaries fortnightly might be about $6,000 or 1.5% better off at retirement by converting to payday super.

With fewer obligations accruing on their books, companies’ payroll management will run more smoothly as a result of more frequent super payments.

Additionally, payday super will make it simpler for workers to keep track of their payments and more difficult for them to be taken advantage of by dishonest employers.

The adjustment will especially help people who work in low-paying, sporadic, and precarious jobs because they are more likely to lose out when super is paid less frequently. In this category, women are overrepresented.

The Australian Taxation Office (ATO) predicts that $3.4 billion worth of super were unpaid in 2019–20, despite the fact that the majority of businesses act ethically.

The Government will set higher targets for the ATO to collect payments, and the ATO will receive more resources to help it identify missed super payments early in order to further strengthen the system.

In the second part of this year, Treasury and the ATO will hold extensive consultations with industry and stakeholders regarding these reforms.

Employers, superannuation funds, payroll service providers, and other components of the superannuation system will have enough time to prepare for the shift with the start date of 1 July 2026.

The Albanese Government is dedicated to making the Australian superannuation system more equal, sustainable, and capable of producing greater results for all citizens.

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