The Australian government recently announced a new policy called payday superannuation, which will require employers to pay their employees’ super contributions at the same time as their salary and wages. This policy will take effect from July 1, 2026, and aims to simplify the payment process for employers and employees.
Currently, employers are required to make super contributions for their employees quarterly. This can result in payment delays, impacting an employee’s retirement savings. Under the new policy, employers must pay super contributions at the same time as salary and wages on a fortnightly or monthly basis.
The introduction of payday superannuation is intended to ensure that super contributions are paid promptly and consistently, reducing the risk of lost retirement savings due to late or unpaid contributions. It is also expected to improve transparency and reduce compliance costs for employers.
The policy change will require employers to update their payroll systems and processes to ensure compliance with the new requirements. Employers must keep accurate records of superannuation contributions and provide regular statements to employees outlining the amount of superannuation paid on their behalf.
Introducing payday superannuation will provide employees with greater transparency and more timely access to their super contributions. It will also make it easier for them to keep track of their retirement savings and plan for the future.
Overall, the introduction of payday superannuation is an important policy change that has the potential to benefit both employers and employees. By simplifying the payment process and ensuring timely and consistent super contributions, it will help secure millions of Australians’ retirement savings. Employers should start preparing for this change well in advance to ensure they comply with the new requirements when they come into effect.
To learn more about the upcoming payday superannuation policy and how it may affect your business. Start planning and budgeting. We encourage you to contact Katia Chehade, a registered BAS Agent, to learn more and ensure that your business is ready for this important policy change.