At the time of the 2023 Budget the Australian Government announced an intention to implement ‘payday superannuation’ for employers’ lodgement of superannuation contributions.

The Government announced that ‘from 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages’.

The Government’s stated reasons for this change to long-standing arrangements for making super contributions on employees’ behalf include:

• “By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement.”
• “More frequent super payments will make employers’ payroll management smoother with fewer liabilities building up on their books.”
• “Payday super will also make it easier for employees to keep track of their payments, and harder for them to be exploited by disreputable employers.”
• “The change will particularly benefit those in lower paid, casual and insecure work who are more likely to miss out when super is paid less frequently.”

In March 2025 the Government announced a very brief period of consultation on draft legislation and regulations to implement payday superannuation.

Ai Group has responded to these exposure drafts.  The Ai Group submission:

• Identifies various concerns with the proposed changes to superannuation obligations, including the rationale for introducing payday superannuation and the proposed timing of its implementation.
• Identifies alternative options to implementing the policy with less potential for detriment to employers.
• Addresses various associated and supporting proposals, including a ban on advertising superannuation products during employee onboarding.  

It is not yet clear when the re-elected government may introduce amending legislation seeking to implement payday superannuation folowing these consulations.