Payday super has passed Parliament, marking a major shift to combat unpaid entitlements and strengthen retirement outcomes for millions of workers.
Australia’s superannuation industry has welcomed the passage of the Treasury Laws Amendment (Payday Superannuation) Bill through the Senate, calling it one of the most significant reforms to boost retirement savings and tackle unpaid entitlements.
Superannuation peak body the Association of Superannuation Funds Australia (ASFA) has described the change as a “game-changing reform” that ensures super is paid at the same time as wages from 1 July 2026.
ASFA chief executive officer Mary Delahunty said linking super to payday will help address unpaid contributions, with more than $5 billion in retirement savings withheld from workers each year.
“Payday Super is one of the most significant reforms to the superannuation system in decades, and it’s long overdue. Paying super with wages will make the system fairer, boost retirement balances, and ensure super is achieving its core objective,” Delahunty said.
She added that the sector now shifts to implementation: “The real work begins: ensuring regulations are practical, delivering a smooth transition for employers, payroll providers and funds alike. ASFA will lead that work on behalf of the sector.”
ASFA has been preparing the industry through its InPractice program, including work on regulatory settings, SuperStream v3 and technology upgrades, and communications for employers and service providers.
“This is the most significant operational transformation the industry has faced since SuperStream, but we’re well-practised at implementing change at scale,” Delahunty said.
AustralianSuper chief member officer Rose Kerlin said the reforms will deliver earlier payments and stronger compounding benefits.
“For many working Australians, this legislation means their super will be paid earlier and invested earlier, maximising the benefit of compounding growth,” Kerlin said.
Kerlin further stated that AustralianSuper will support businesses with payment technology and education.
Australian Retirement Trust also welcomed the bill, with chief executive officer Kathy Vincent noting it will bring “greater consistency” to how Australians save.
“From 1 July 2026, Australians will receive their full pay package – wages and super – at the same time. This change will make super fairer, simpler and more transparent,” Vincent said.
Vincent acknowledged employers will need to adjust but said the fund is committed to helping them transition. ART research shows two-thirds of businesses pay wages monthly or fortnightly, but only around half pay super on the same cycle.
The Super Members Council (SMC) said the reform is a “historic day” for retirement fairness, noting unpaid super costs workers $5.7 billion a year.
Its modelling shows 3.3 million people missed out on super in 2022–23. Chief executive officer Misha Schubert said payday super will help “ensure every dollar owed to millions of workers makes it into their super account on time and in full.”
Rest chief strategy officer Tyrone O’Neill said the change particularly benefits part-time and casual workers.
“These members will soon receive their super at the same time they’re paid. They will receive a meaningful financial benefit through the compounding returns on more frequent contributions,” O’Neill said.
Industry bodies and major funds have signalled strong readiness to work with government, employers and payroll providers to ensure compliance and smooth adoption ahead of the 2026 start date.
