Payday Super: What do employers need to know?
2 mins reading time
In September 2024, the Australian Government made good on its FY24 budget announcement that it would introduce a new measure known as “Payday Super”.
Recently, Treasury released exposure draft legislation and regulations with explanatory materials. The plan remains that these changes come into effect on 1 July 2026.
Payday Super: Proposed legislation and regulations
The Superannuation Guarantee Charge Amendment Bill 2025 provides the following key changes.
- Superannuation contributions must be received by the superannuation fund within seven calendar days of the day on which the employer makes payments of qualifying earnings (the amount of earnings employees are paid on which the superannuation guarantee (SG) is calculated) to or for the employee.
- The current quarterly obligation for SG compliance will be removed.
- The current quarterly maximum contributions base will shift to an annual cap and will be calculated as the concessional contributions cap multiplied by 100 and divided by the SG percentage (e.g. 11.5%).
- Superannuation shortfalls will need to disclosed by employers by way of voluntary disclosure statements, rather than the existing SG statements.
- Late payment penalties will be imposed when the SG charge remains outstanding after a specified period of time.
There are limited exceptions to the proposed changes.
What does Payday Super mean for employers?
The proposed legislation provides guidance on the likely practical implementation of payday super and new obligations to be created for employers.
Following the introduction of the proposed legislation, employers will have the opportunity to streamline current systems while also requiring significant changes to the way payroll systems operate.
Once this legislation is enacted, it will be important for employers to ensure employees are paid superannuation contributions on time and that any shortfalls are recorded by way of the approved forms.
These changes represent a fundamental shift away from the approach to payment of superannuation in Australia and, if legislated, will require significant changes for employers in their approach to making superannuation contributions. Employers who do not have robust frameworks already in place which are able to adapt and pivot with the new regime will be at a significant disadvantage.
Contact Macpherson Kelley’s Tax and Employment lawyers for advice
Please contact our Tax, and Employment, Safety and Migration teams for more information.
This article was written by Stella Fordham and Elizabeth Allen.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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Payday Super: What do employers need to know?
In September 2024, the Australian Government made good on its FY24 budget announcement that it would introduce a new measure known as “Payday Super”.
Recently, Treasury released exposure draft legislation and regulations with explanatory materials. The plan remains that these changes come into effect on 1 July 2026.
Payday Super: Proposed legislation and regulations
The Superannuation Guarantee Charge Amendment Bill 2025 provides the following key changes.
- Superannuation contributions must be received by the superannuation fund within seven calendar days of the day on which the employer makes payments of qualifying earnings (the amount of earnings employees are paid on which the superannuation guarantee (SG) is calculated) to or for the employee.
- The current quarterly obligation for SG compliance will be removed.
- The current quarterly maximum contributions base will shift to an annual cap and will be calculated as the concessional contributions cap multiplied by 100 and divided by the SG percentage (e.g. 11.5%).
- Superannuation shortfalls will need to disclosed by employers by way of voluntary disclosure statements, rather than the existing SG statements.
- Late payment penalties will be imposed when the SG charge remains outstanding after a specified period of time.
There are limited exceptions to the proposed changes.
What does Payday Super mean for employers?
The proposed legislation provides guidance on the likely practical implementation of payday super and new obligations to be created for employers.
Following the introduction of the proposed legislation, employers will have the opportunity to streamline current systems while also requiring significant changes to the way payroll systems operate.
Once this legislation is enacted, it will be important for employers to ensure employees are paid superannuation contributions on time and that any shortfalls are recorded by way of the approved forms.
These changes represent a fundamental shift away from the approach to payment of superannuation in Australia and, if legislated, will require significant changes for employers in their approach to making superannuation contributions. Employers who do not have robust frameworks already in place which are able to adapt and pivot with the new regime will be at a significant disadvantage.
Contact Macpherson Kelley’s Tax and Employment lawyers for advice
Please contact our Tax, and Employment, Safety and Migration teams for more information.
This article was written by Stella Fordham and Elizabeth Allen.