The ATO from 1 July 2026 will introduce Payday Super, a major change to the way superannuation is paid, which requires superannuation to be paid within 7 days to an employee’s super fund from when they receive payment of salaries and wages.
The aim of payday super is simple: to ensure employees receive their super entitlements sooner and to reduce the risk of unpaid or late super. Under the current system, super can be paid up to 28 days after the end of each quarter, meaning employees may wait months before contributions appear in their super fund. Payday super removes this delay.
For employees, this change means better visibility and faster growth of their retirement savings. Super contributions will be credited to their fund more regularly, allowing investment earnings to compound sooner.
For employers, payday super will require changes to payroll processes and cash flow planning. Super will need to be calculated and paid each pay cycle, whether wages are paid weekly, fortnightly, or monthly. While this increases the frequency of payments, it reduces the risk of large quarterly super bills and penalties for late payment.
Although payday super represents a shift in how super is managed, it ultimately promotes fairness, transparency, and compliance. Preparing early will help businesses transition smoothly and ensure employees receive the full benefit of their super entitlements.
If you need assistance reviewing your payroll setup or understanding how payday super will affect your business, the Waterford Accountants Team are more than happy to help.