Australian employees will be better able to track their superannuation payments with the introduction of payday super.
The Federal Government today announced that from July 1, 2026, employers would need to pay Superannuation Guarantee (SG) contributions to employees with every pay cycle, instead of quarterly.
A statement from the Treasury Department said the reform would ensure employees received their contributions more often, helping to reduce unpaid super.
It said paying SG contributions more frequently would make it easier for employees to track their entitlements.
The announcement comes as the Australian Tax Office said more than $17.8 billion of superannuation was sitting unclaimed because funds were unable to find the owners.
Today’s move was welcomed by the Super Members Council (SMC), which said it would result in the average worker being $7700 better off in retirement, because returns accrued and compounded sooner.
Super Members Council CEO Misha Schubert said currently superannuation underpayments cost 2.8 million Australian workers around $5 billion in a year.
“This crucial reform will modernise the super payment system and dramatically help to curb unpaid super,” Ms Schubert said.
She said a new penalty regime would encourage employers to rectify underpayments quickly, with those deliberately or repeatedly underpaying facing more severe penalties.
“Shifting to payday super will level the playing field for all businesses – so employers who pay their workers super correctly are not undercut by those who have not.”
Ms Schubert said it also created smoother cashflow management for business.
“Quarterly super payment allows large super liabilities to accrue and creates an administrative burden from time-consuming reconciliations, which can be prone to errors leading to incorrect payments.”
She said SMC analysis released in a report on unpaid super this month found over nine years, Australians had missed out on $41.6 billion in unpaid super, with the average affected worker missing out on $1800 in super in a year, meaning more than $30,000 less in retirement savings.
