Payday Super is a major reform to Australia’s superannuation system that will require employers to pay superannuation contributions to employees at the same time as their wages, rather than quarterly as is currently the case.
Key Points:
- Start Date: The reform is set to take effect from 1 July 2026.
- Current System: Employers are currently only required to pay super quarterly, which can lead to delays, underpayments, or missed payments.
- New Requirement: Under Payday Super, employers must pay Superannuation Guarantee (SG) contributions within 7 calendar days of each payday. [treasury.gov.au]
- Benefits:
- Helps employees track their super more easily.
- Reduces the risk of unpaid or lost super, especially if an employer becomes insolvent.
- Boosts retirement savings due to earlier compounding of contributions.
- Expected to deliver an average of $7,700 extra in retirement savings for workers.
Why It Matters:
- Around 8.9 million Australians are expected to benefit.
- It addresses what’s often referred to as “super theft”, where employers fail to pay the correct super amounts.
- The reform is widely supported across the political spectrum and by the superannuation industry
Contact Advisory One today for accounting help with your business. You can contact us on 02 6324 5888 or email us at admin@advisoryone.com.au
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