On 9 October 2025, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 (collectively hereafter referred to as “the Bills”) were introduced to Parliament.
These Bills have since passed both Houses and received Royal Assent on 6 November 2025.Next Step for Payday Super: Legislation Introduced and Passed
Under the new system, employers will be required to deposit super contributions at the same time as salary and wages — a reform set to begin on 1 July 2026.
These changes aim to reduce unpaid super, particularly among lower-paid, casual, and insecure workers. According to recent ATO data, roughly $5.2 billion in super was unpaid in the last financial year. For a 35-year-old in a typical unpaid super case, the Government estimates the reform could result in more than $30,000 extra in retirement savings.
Key Features of the New Legislation
The recently passed Treasury Laws Amendment (Payday Superannuation) Bill 2025 brings several important changes.
- Employers must ensure super contributions arrive in the employee’s super fund within 7 business days of each payday.
- This “qualifying earnings” (QE) concept includes ordinary time earnings, salary sacrifice contributions, and other relevant amounts.
- The super guarantee charge (SGC) will be updated, and additional penalties will apply if employers miss their obligations.
- The Small Business Superannuation Clearing House (SBSCH) will be shut down from 1 July 2026, and it will no longer accept new users after 1 October 2025.
ATO’s First-Year Compliance Approach
To help employers adjust, the ATO has published a draft Practical Compliance Guideline (PCG 2025/D5), which applies for the first year of “payday super” (1 July 2026 – 30 June 2027).
Employers will be placed into three risk zones depending on how well they comply:
- Low risk: Employers who make timely contributions and fix any mistakes quickly may not face ATO review.
- Medium risk: For those transitioning to the new rules but with some late payments or timing misalignments.
- High risk: Those with outstanding super shortfalls may be heavily prioritised by the ATO for investigation.
Public consultation on the draft guideline is open — comments are being accepted.
Why These Reforms Matter
- They address billions of dollars in unpaid super, which disproportionately affects vulnerable workers.
- By making super payments more frequent, employees benefit from earlier compounding, helping build larger retirement balances.
- The ATO’s enforcement framework is being redesigned to better target non-compliant employers.
What Employers Should Do Now
If you run a business, now’s the time to act:
- Review payroll systems to ensure they can handle super payments aligned with pay cycles.
- Assess cash flow impacts, since more frequent super payments may affect liquidity.
- Plan for the SBSCH closure, especially if you’re a small employer.
- Stay updated on ATO guidance — the compliance framework may be finalised before July 2026.
Conclusion
With the passage of the payday super legislation, Australia is moving toward a fairer super system. These reforms aim to close the superannuation gap, especially for lower-paid and casual workers, by requiring employers to pay super on payday. The ATO’s risk-based compliance plan gives businesses a runway to adjust, but proactive preparation is essential. Employers should start planning now to ensure a smooth transition by the July 2026 start date.
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