Payday Super 2026: What employees and employers need to know

Big changes are coming to superannuation payments, and for employers, it’s time to get ready. While we’re not accountants or financial advisors, we work closely with employees and employers every day, so it’s important for us to keep our audience up to date on these changes. 

From 1 July 2026, employers will be required to pay employees their Super Guarantee (SG) contribution every payday, not just once a quarter. 

What impact does this have on employees? 

• Faster retirement savings growth: More frequent contributions mean there are better chances for your super to grow through compounding returns. There is an estimated average benefit of $6,000 over a lifetime for median earners.¹ 

• Transparency: Regular payments make it simpler to check your account and quickly spot any missing contributions. 

• Hitting contribution limits sooner: If you have a salary sacrifice arrangement, you may hit your annual contribution caps faster. It’s important to log in to your super account regularly to check that you haven’t hit your annual limit. 

What impact does this have on employers? 

• Payroll workload: Payroll and finance teams will be busier, processing super payments every pay cycle. 

• Reporting obligations: Employers will need to report both qualifying earnings and super liability in Single Touch Payroll (STP). 

• Cash flow pressure: Paying super more frequently means funds leave bank accounts sooner, impacting cash flow management.  

• Compliance: Miss a deadline and the penalties are steep; a new interest charge and a 60% admin uplift. The late payment offset is gone after 1 July 2026. 

• Training needs: Payroll teams will need to know the new rules inside out. 

• Deadlines: Super contributions must hit employees’ funds within 7 business days of payday, except for new employees, which allows for within 20 days of their start date. 

FAQs 

When do the new Payday Super rules start? 

From 1 July 2026, employers must pay super at the same time as wages. 

How often will super be paid under the new rules? 

Every payday, instead of quarterly. 

What happens if an employer doesn’t pay superannuation on time? 

They may face penalties from the ATO and possible breaches under Fair Work laws. 

Does Payday Super apply to all employees? 

Yes, it applies to most employees, but contractors and special arrangements may differ. 

How quickly must contributions reach the super fund? 

Within 7 business days of payday for existing employees and within 20 business days of starting work for new employees. 

Will this affect salary sacrifice or contribution caps? 

Yes, an increased frequency of payments could push some employees, especially those who are salary sacrificing, over their annual contribution caps. As an employee, you should monitor your contributions closely to avoid being taxed at a higher rate. 

Why is the government introducing Payday Super? 

The aim is to reduce unpaid super, improve transparency, and boost retirement savings. 

What should employers do to prepare? 

Update payroll systems, review cash flow, and train staff on compliance. 

What should employees do to prepare?  

Regularly check their super account to ensure they don’t hit their contribution cap, especially if they have a salary sacrifice arrangement. 

Payday Super reform is coming, and it’s not just a tick-the-box change. It’s a whole new way of working. By staying ahead and informed, you are in the best position possible to ensure the transition is smooth. If you have any further questions on how to get ready for Payday Super, please talk to your payroll officer or financial adviser.