The government’s payday super reforms are moving closer to implementation, with legislation introduced to Parliament and now passed, awaiting royal assent. These changes will significantly alter how employers manage superannuation contributions.

What’s Changing?

From 1 July 2026, employers will be required to pay employees’ superannuation contributions at the same time as salary and wages. Under the new law:

• Super contributions must be received by the employee’s fund within seven business days of payday, or employers will be liable for the Superannuation Guarantee (SG) charge.
• The SG charge will be redesigned to better support compliance and make payday super work.
• The ATO will have enhanced ability to enforce the law and quickly identify employers who fail to make contributions.

Key Differences from Earlier Drafts

• Contribution timeframes are now measured in business days rather than calendar days.
• Employers will have 20 business days (previously 21 calendar days) to make contributions for new employees or for existing employees who change funds.

What Should Employers Do Now?

Wile the legislation is set to commence on 1 July 2026, the ATO has advised employers not to rush into making system changes yet. This is because payroll software providers, banks and super funds need time to update their systems to support payday super.

Instead, focus on preparation and awareness:

• Stay informed as the legislation progresses and the ATO finalises its compliance guidelines.
• Assess potential cash flow impacts of more frequent super payments so you’re ready when changes take effect.
• Engage with your payroll provider to understand their roadmap for compliance and ensure you’re aligned.
• Plan alternatives if you currently use the Small Business Superannuation Clearing House (SBSCH), as it will close from 1 July 2026.

By monitoring developments and planning ahead, you’ll be well-positioned to make a smooth transition when the industry is ready.