Payday Superannuation
Payday Super is a proposed change to the superannuation guarantee (SG) system in Australia that would require employers to pay employees’ super contributions on the same day as their salary. Although not yet legislated, we expect the change to take effect on July 1, 2026.
The goal of Payday Super is to improve outcomes for employees and reduce the gap between what is owed to employees and what has been paid. The Government estimates that a 25-year-old median income earner could be around 1.5% better off at retirement if they received their super on the same day as their wages.
Employers will need to review and update their payroll processes and their cash flow management, to comply with the new requirements. Non-compliance could result in penalties. Non-payment and underpayment of superannuation is equivalent to wage theft and has significant impacts on retirement outcomes.
We’ll continue to track this proposed legislation so you can stay one step ahead.
Click here for more information direct from Treasury.
Superannuation increase
The superannuation rate is scheduled to increase to 12% as at 1 July 2025. This should see the superannuation rate stabilize over the coming years according to the ATO.
| Period | General super guarantee (%) |
| 1 July 2024 – 30 June 2025 | 11.50 |
| 1 July 2025 – 30 June 2026 | 12.00 |
| 1 July 2026 – 30 June 2027 | 12.00 |
| 1 July 2027 – 30 June 2028, onwards | 12.00 |
Criminal Underpayment Laws & Protections for Businesses
A reminder that Criminal Underpayment Laws are now in effect, commencing 1 January 2024. The Voluntary Small Business Wage Compliance Code took effect from 1 January 2025, in parallel with the criminal underpayment offence, and can be used by businesses under the Fair Work Act that employ fewer than 15 employees.
A small business employer will have complied with the Code in relation to an underpayment if they did not intend to underpay their employee. The Code provides a non-exhaustive list of examples of actions that a small business employer can take, and reliable sources from which they may obtain information, to demonstrate an underpayment was unintentional.
With honest efforts to pay the right wages and entitlements employers can be protected from prosecution. Fair Work Ombudsman Anna Booth states “The offence applies only to intentional underpayments, and compliance with the Voluntary Code means we can’t refer a small business for possible prosecution.”
Small business employers are encouraged to read the Fair Work Ombudsman’s Guide and follow the Voluntary Small Business Wage Compliance Code to avoid worry about the criminal offence. Both the Guide and the Voluntary Small Business Wage Compliance Code are available on the FWO’s website.