3rd October, 2024
The landscape of superannuation is set to undergo a significant change, with the introduction of payday superannuation. This new legislation, coming into effect from 1 July 2026, will require businesses to pay superannuation to employees at the same time as their salary or wages, rather than quarterly.
This reform, introduced by the Albanese Government, aims to improve the retirement outcomes of millions of Australians by ensuring more timely and consistent super payments.
For businesses of all sizes, this marks a fundamental shift in how superannuation is managed. Whether you’re a small business or a larger enterprise, this new requirement will impact how you handle payroll and employee contributions.
Let’s explore what payday superannuation means, how it will affect businesses, and how MYOB can help ensure you’re prepared for the change.
Under the current system, businesses are required to make superannuation payments on a quarterly basis. While many employers adhere to this, there are often delays or missed payments, leading to substantial amounts of unpaid super. In fact, the Australian Taxation Office (ATO) estimates that $3.6 billion in super went unpaid in 2020–21 alone.
The new payday superannuation legislation aims to eliminate these gaps by aligning superannuation payments with employee wages. From 1 July 2026, employers will need to pay super every payday, ensuring that employees receive their super contributions at the same time as their salary or wages.
This reform is expected to particularly benefit lower-income workers and those in casual or part-time employment, who are often most at risk of missing out on their super.
While this change offers clear benefits for employees, businesses need to prepare for the logistical adjustments it entails. The move to payday super will require businesses to update their payroll processes to ensure super contributions are made with each pay cycle.
This change means a closer integration of superannuation into your day-to-day payroll management.
For many businesses, especially smaller ones, transitioning to a more frequent super payment schedule may seem daunting. Key challenges include:
The good news is that with the right systems in place, businesses can streamline these processes and stay compliant.
MYOB understands the challenges businesses face when it comes to compliance and payroll. With the introduction of payday superannuation, MYOB’s payroll solutions can help you stay ahead of the changes, ensuring smooth, accurate, and timely super payments.
MYOB’s software integrates payroll and superannuation management, and this will remain the case when the new payday super legislation comes into effect in 2026.
This way, businesses won’t need to manage separate processes for paying wages and super. By automating super contributions, MYOB helps reduce the administrative burden, ensuring that each super payment will be processed with your regular payroll runs.
By integrating superannuation directly into payroll systems, MYOB ensures that businesses remain compliant with the new payday super rules.
With MYOB, superannuation payments can be handled in real-time, ensuring businesses meet their obligations without the added stress of managing separate processes or risking late payments.
Payday super introduces strict penalties for businesses that fail to make contributions on time. With MYOB, you can avoid these penalties by automating your super payments and ensuring they are made by the due date, every payday.
MYOB’s software will help keep your business on track, ensuring your super payments are always in line with ATO requirements.
Automation through MYOB doesn’t just make life easier — it helps safeguard your business from compliance risks. Businesses can rest easy knowing their super obligations are met without manual intervention, reducing the risk of errors.
One concern for businesses transitioning to more frequent super payments is the potential impact on cashflow. MYOB helps businesses manage cashflow by providing visibility into upcoming superannuation obligations, ensuring that you can plan ahead and keep your finances in check.
MYOB’s cashflow tools give businesses a clear picture of their upcoming obligations, including super contributions. This allows businesses to manage their finances more effectively and avoid surprises.
The shift to payday superannuation presents an opportunity for businesses to modernise their payroll systems and improve compliance. While the 1 July 2026 implementation date might seem far off, now is the time to start preparing.
By updating your payroll software and ensuring you have the right systems in place, you can make a smooth and stress-free transition.
Payday superannuation is a significant change for Australian businesses, but with the right tools and systems, you can easily adapt to these new requirements.
MYOB offers comprehensive payroll solutions that streamline superannuation payments, reduce administrative burdens, and ensure your business stays compliant with the ATO’s guidelines.
If you’re not already using MYOB’s payroll solutions, now is the perfect time to explore how it can help your business stay compliant and efficient. The earlier you start preparing, the easier the transition will be when the new legislation takes effect.
Start preparing your business now and ensure you’re ready for payday super in 2026.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.