From 1 July 2026, employers must pay their employee’s superannuation contributions at the same time as their wages or salary, under the Federal Government’s new “payday super” laws.
Previously, employers were only required to pay their employees’ superannuation contributions at least quarterly.
There are exceptions to the new payday timeframe for paying superannuation, including:
- employers have 20 business days from the day after a new employee’s first payday for the new employee’s superannuation fund to receive the initial superannuation contribution;
- if an employee is paid outside of their regular pay cycle, the employer must pay the applicable superannuation contribution to the employee’s superannuation fund within 7 business days after the next ordinary payday; and
- if exceptional circumstances exist (such as a natural disaster or widespread ICT outages) which affect multiple employers on a large scale, the Australian Taxation Office may determine that the payday timeframe is extended.
If an employer fails to pay superannuation contributions within the required timeframes, they are at risk of being hit with significant penalties. Penalties are based on how much of the outstanding superannuation contributions remain unpaid at the end of the relevant timeframe.
In summary:
- superannuation contributions must be made at the same frequency as an employee’s pay, rather than quarterly;
- employers have 7 business days from the employee’s payday for the employee’s superannuation contribution to reach their nominated super fund;
- employers can face penalties if they fail to pay superannuation contributions on payday; and
- there are some exceptions to the new payday timeframes for new employees, irregular (outside of the normal pay cycle) superannuation contributions, and in exceptional circumstances.
Ahead of 1 July, employers should take steps to ensure that their payroll processes and systems are ready for superannuation contributions to be made on payday from 1 July and that employees are notified of the changes to their superannuation contributions.
If you need expert legal advice on this issue, please contact our Employment Law team on (03) 6226 1200 or directly to Rebecca Crawford, Alice Cox or Mia Grant.