Pay-Day Super Amendments: Time to Act Now!

The employment law landscape continues to be as fast changing as ever with the Treasury Laws Amendment (Payday Superannuation) Bill 2025 coming into effect from 1 July 2026.

The new legislation requires employers to process the payment of an employee’s superannuation contribution on the same day as wages. Employee super funds must receive these payments within seven (7) business days. This is a major change from super payments being payable quarterly.

Penalties for paying super late under the new law can range from 25% – 50% of the unpaid super balance.

Small Businesses beware.

The Small Business Superannuation Clearing House will also cease operating after 30 June 2026. Any small businesses currently relying on the SBSCH to process super payments needs to urgently transition to an alternative payment system.

Action Needed

It is essential that employers update their payroll systems to facilitate compliance by 1 July 2026.

Under the new legislation the payment of super is linked directly to the employer payroll and not fixed to its own cycle. Now is the time to be strategic with pay frequency. If an employer switches from weekly to fortnightly or monthly pay the obligation to pay superannuation follows the pay cycle.

If you are considering switching from a weekly pay schedule to fortnightly or monthly, now is the time to do so.

Employers must be careful to ensure that their employee’s legal rights are complied with in relation to pay frequency. Many awards provide specific frequency requirements. If you are unsure, or in need of advice regarding the new legislation please contact Isaac Mumford of our Office at Isaac.Mumford@lewisholdway.com.au .