Payday super – a big step against super theft
The Federal Government has passed new laws to make employers pay super when they pay wages, not months later. The law comes into effect on 1 July 2026.
Pay day super means that workers' superannuation has to be paid into their super funds at the same time that wages are paid.
Now schools must get payroll systems ready, so members see super land every pay cycle – on time, every time. Contributions will generally have to reach funds within seven business days of payday – ending the long quarterly lag that’s enabled billions in underpayments.
Why this change matters
The new rules will make it harder for super to be stolen or denied. Earlier, more frequent payments make non-payment visible quickly, and the ATO is getting better tools to spot it and act. The Treasurer has called unpaid super “a form of wage theft” and flagged stronger, faster enforcement.
Each year more than $5 billion that should be in workers’ accounts isn’t paid, hitting young workers, women, migrants and insecure workers hardest. Now, employers will have to fix late or missing payments quickly and repeat offenders will face tougher penalties. Workers will be compensated for any lost earnings.
Requiring employers to pay super on pay day means millions of workers will retire with tens of thousands more in their super fund. Union members won superannuation for workers over 30 years ago and have fought to keep improving it ever since.
Features of the new super laws:
Pay super on payday (at the same time as wages).
Funds must receive the Superannuation Guarantee (SG) within 7 calendar days of payday.
Redesigned Superannuation Guarantee Charge (SGC): auto-calculates, simplifies, issues tougher penalties; ensures workers are compensated.
More money at retirement
Paying super on payday means compounding starts sooner. The Government says a typical 25-year-old could retire $6,000 better off; industry analysis points to an average $7,700 boost.
If your employer doesn’t pay super when they should – contact your union!
