PayDay Super
From 1 July 2026, employers must pay superannuation contributions at the same time as wages, rather than quarterly. This reform is known as Payday Super and aims to improve retirement outcomes and reduce unpaid super, which the ATO estimates reached $6.25 billion last financial year.
Under the new rules, employers must deposit super into employees’ funds within seven days of payday. Late payments will trigger the Super Guarantee Charge, which includes:
- The unpaid amount
- Daily interest
- An enforcement charge of up to 60% of the shortfall
The ATO will focus on high-risk employers but won’t target those genuinely trying to comply during the first year. Still, businesses are urged to prepare early.
What this means for you
- Employees: More frequent super payments mean better compounding and easier tracking. A 25-year-old could retire with $6,000 more, and a 35-year-old recovering unpaid super could gain $30,000.
- Business Owners: You’ll need to update payroll systems and plan for more frequent super payments. Early preparation is key to avoiding penalties.
How we can help
This reform is a great opportunity to revisit your financial strategy. We can assist you with:
- Ensuring your super contributions are accurate and aligned with your goals
- Reviewing your investment mix and retirement projections
- Integrating these changes into your broader financial plan
If you’d like to understand how Payday Super fits into your personal or business situation, we’re here to help.
Craig Kirkwood ADFP
Authorised Representative (No 401525)
