- Published
The Federal Government has passed legislation that will require employers to pay super at the same time as wages — a significant shift aimed at strengthening retirement outcomes for millions of Australians.
Passed on 4 November 2025, the new laws form a key part of the Labor Government’s strategy to ensure workers receive their super on time and reduce the billions lost each year due to unpaid or late contributions.
So, what does this mean for employers — especially those operating in heavy industries?
What’s Changing From 1 July 2026
Under the new payday super rules, employers will need to rethink their payroll processes. The core changes include:
- Super must be paid on payday
Instead of quarterly payments, super guarantee (SG) contributions must now be paid at the same time as salary and wages.
- Super funds must receive SG within 7 business days
Super funds will need to receive contributions no later than seven business days after payday, ensuring employees can see contributions hitting their accounts faster.
- Tougher penalties for non-compliance
Changes to the Super Guarantee Charge (SGC) will make penalties more severe for employers who fail to pay SG in full and on time.
- New employees must receive their first contribution sooner
For new starters, employers will have 20 business days (from the day after wages are paid) for the employee’s chosen fund to receive their first super payment.
- Closure of the ATO Small Business Super Clearing House
The ATO has confirmed the Small Business Super Clearing House will close.
Employers currently using the SBSCH will need to transition to an alternative clearing house or use payroll software that handles super payments.
Why the Change?
The Government’s intention is clear: to ensure workers receive their super in real time and to improve overall retirement balances.
According to the Government’s media release, switching to payday super will:
- Reduce the risk of unpaid or missing super
- Improve visibility of payments for employees
- Support stronger long-term financial outcomes for Australia’s workforce
What Employers Should Do Now
Although the start date is 1 July 2026, businesses should start preparing early. We recommend:
✔ Review your payroll system
Ensure your payroll software can process super and wage payments simultaneously. Check with your provider about how they intend to handle this change.
✔ Check your super clearing house
If you use the SBSCH, start planning for its closure and explore alternative platforms.
✔ Strengthen compliance processes
With penalties increasing, now is the time to tighten your systems and record-keeping.
✔ Stay informed
More guidance will be released as we get closer to 2026 — especially around how the new penalties will operate.
Need Help Getting Prepared?
Edwards HR supports heavy industry employers to stay compliant, streamline payroll, and reduce risk. If you’d like help reviewing your payroll processes or understanding your obligations under payday super, reach out to our team.
We’re here to help you get ahead of the changes — not scramble at the last minute.
