The Federal Government has moved forward with its proposal to amend the way superannuation is paid to employees.
On 9 October 2025, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Bill) was introduced. It is a Bill to amend key parts of Australia’s compulsory superannuation regime to implement the Government’s long-anticipated Payday Super reforms.
Expected to commence 1 July 2026, the amendments, if they come into effect, will result with several changes in the way superannuation is managed by employers, including:
Payment Frequency
Requirement of employers to pay their employees superannuation guarantee amount at the same time as paying employees their salary and wages. This creates a more frequent payment requirement, as opposed to the currently quarterly requirement.
The Introduction of QE
QE is the qualifying earnings payday, and for the purposes of the reforms includes:
- ordinary time earnings (OTE)
- salary sacrifice superannuation contributions
- other amounts which are currently included in an employee’s salary or wages for Superannuation.
Superannuation Guarantee Charge Liability
Employers will be liable for the superannuation guarantee charge (SGC) unless superannuation contributions are received by their employees’ superannuation fund within the required timeframe; 7 business days after QE.
Superannuation Guarantee Charge Calculation
The Bill provides an updated SGC will consist of:
- An individual final SG shortfall based on QE – any contributions that remain unpaid when the SGC is assessed; and
- An interest component;
- An administrative uplift of up to 60% (designed to reflect the cost of enforcement); and
- A choice loading which will apply where an employer does not comply with the choice of fund rules.
Single Touch Payroll
Employers will be required to report in Single Touch Payroll both the QE and the value of the superannuation liability for an employee.
The Small Business Superannuation Clearing House (SBSCH)
- Will be retired from 1 July 2026;
- From 1 October 2025, employers are now unable to register as new SBSCH users as only existing users will have access until 1 July 2026.
IRiQ Law Can Help
Some of the practical steps an employer needs to consider in the lead up to 1 July 2026 include:
- Employment Contract review: identifying contractual (or industrial via an Award or Enterprise Agreement) obligations with respect to pay frequency requirements. Understanding pay requirements and what it will mean for superannuation contributions will be important for compliance, particularly where a number of pay days apply across the business.
- Payroll: taking steps to ensure payroll systems are up to date and able to manage what will be more regular superannuation contributions.
- Streamlining induction processes to avoid contribution delays in payment: information including a new employee’s tax file number and superannuation choice (or stapled fund is the choice is not given) should be gathered as soon as practical on commencement.
IRiQ Law’s legal team is available to assist businesses to navigate the amendments in preparation for 1 July 2026 – we can discuss the practical realities of a more frequent superannuation contribution scheme with you, and the ways you can be ready when they take effect. Contact us today.
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