The Treasurer has announced that from 1 July 2026, employers will be required to pay their employees’ superannuation contributions on the same day as the related salary and wages are paid.

This change will reduce the risk of non-payment and wage theft.

The Treasuer said the change will particularly benefit those in lower paid, casual and insecure work who are more likely to miss out when super is paid less frequently. Women are overrepresented in this group.

The Australian Taxation Office (ATO) estimates $3.4 billion worth of super went unpaid in 2019–20.

To further strengthen the system, the ATO will receive additional resourcing to help it detect unpaid super payments earlier and the Government will set enhanced targets for the ATO for the recovery of payments.

Treasury and the ATO will consult closely with industry and stakeholders on these changes in the second half of 2023.

The 1 July 2026 start date will provide employers, superannuation funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.