Superannuation update from the Australian Government – what the shift to payday super means for you.

The Australian Government announced a significant change to superannuation.

From 1st July, 2026 all businesses will need to pay their employees’ superannuation on payday. 

Why has the payday super initiative been introduced? 

The ATO estimated that while most business owners are doing the right things, there was still a whopping $3.4 billion of unpaid super in FY 19/20.

How will payday super affect employees?

Payday super aims to boost the retirement funds of Australian workers and prevent unpaid super.

“A 25 year old median incomer earner currently receiving their super quarterly and wages fortnightly could be around $6000 of 1.5% better off at retirement.”

Source: The Hon Jim Chalmers MP Treasurer

Payday super will help boost retirement funds for working Australians

How will payday super affect business owners?

The ATO thinks the introduction of super payments more often will cut down on large liabilities later down the track. Of course, with any change there will be need to be time committed to understanding the change and rolling it out across your business.

What do business owners need to do to prepare for payday super?

The actual process for payday super hasn’t been finalised yet. Changes don’t come into effect until July 1, 2026 – we’ll be sure to pass on any updates.

If you’d like to read more, you can check out the ABC news article or the ATO press release.

Want to chat about payday super and what it means for your business?

We’d love to hear from you!

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Ready to take your books and business to smooth operator level? Smart choice!