Payday Superannuation

As seen in Woopi News December 2025

In November 2025, Payday Superannuation legislation passed both houses of Parliament and received Royal Assent. The new law comes into effect as of 1 July 2026.

Superannuation was previously only required to be paid on a quarterly basis, with payments needing to be received by the superannuation fund within 28 days after the end of the quarter, however, from 1 July 2026, this changes.

Employers with need to pay their employees Superannuation Guarantee (SG) contributions at the same time as they pay their employees’ wages, with contributions needing to be received by the fund within 7 business days.

If superannuation payments are not received by the superannuation fund by 7 working days, the employer will be liable to pay Superannuation Guarantee Charge (SGC) made up of:

• The shortfall of SG contributions
• Notional Earnings – an interest component to compensate employees for lost superannuation earnings due to the contributions not being received in full on time
• Administration Uplift – an additional charge levied to reflect to cost to the ATO for enforcement of SGC which can be reduced by making voluntary disclosures

Under the new legislation SGC will be tax deductible, however the interest charges and administration uplift will create a larger liability than under the previous legislation with interest being compounded daily and the administration uplift being up to 60% of the SG shortfall and notional earnings.

What to do as an employer:

• Review your payroll system and ensure it has the facilities for payday super. Software such as QuickBooks, Xero and MYOB can make it easy among others.
• Ensure all your employees have provided the correct superannuation details and that new employees provide their superannuation details before they start working for you.

You don’t have to wait! Many employers have already started paying their employees superannuation when the wages are paid each pay day.