From 1 July 2026, employers will be required to pay their employees’ superannuation at the same time as payment of their salaries and wages.
The Government has released a statement introducing ‘Payday Super’ which it believes will strengthen Australia’s superannuation system and make it easier for employees to keep track of their superannuation payments.
From 1 July 2026, employers will be required to pay their employees’ superannuation at the same time as payment of their salaries and wages. More frequent superannuation payments will make employers’ payroll and cash flow management smoother. Additionally, it can avoid the corrective action that is required (and payment of the superannuation guarantee charge) when an employer unnecessarily holds superannuation contributions and then pays these later than their due date of the 28th day after the end of each quarter.
Employees will benefit from their superannuation being invested and working for them from the moment it is earned.
Employees will also benefit from their superannuation being invested and working for them earlier, rather than only being paid to their superannuation funds each month or quarter. The ability to easily track payments made, including the timing of those payments, may also lead to greater levels of engagement and ease of contribution planning to reduce inadvertent contribution cap breaches.
The government’s announcement is an opportunity to remind employers that the superannuation guarantee rate is increasing from 1 July 2023 to 11%. Further increases to 11.50% and 12% will then occur on 1 July 2024 and 1 July 2025 respectively.
If you have any questions about this change, please do not hesitate to contact us.
Murray Nicholls
Director – Remuneration Services and Business Advisory
Marie Ickeringill
Director – Self Managed Superannuation
