Payday Super laws have today been listed in Parliament. Here’s what business owners need to know. 

Unpaid super costs working Australians a staggering $110 million a week in unpaid retirement savings. It is hoped the new Payday Super laws will eradicate this – and simplify the superannuation contribution process for employers.

What is Payday Super?

Payday Super will require all employers to pay super at the same time as wages, instead of quarterly.

It is proposed to roll out 1 July 2026 and will be a reform to the Superannuation Guarantee Act.

The aim is to boost transparency for workers – who typically assume their super has been paid with wages – and make it easier and faster to detect and fix super underpayments.

It is also hoped the laws will simplify the super contributions process for employers and businesses, with many already paying super more often than quarterly.

A ‘gamechanger’

The Super Members Council (SMC) has welcomed the historic parliamentary listing, calling it a “gamechanger,” with unpaid super amounting to $5.7 billion a year in Australia.

“The Council calls on all Parliamentarians to swiftly pass the laws,” Super Members Council CEO Misha Schubert said in a statement.

According to SMC’s 2024 report, a staggering 3.3 million Australians missed out on $5.7 billion in super in 2022–23, losing an average $1,730 each a year.

“Those losses can make people up to $30,000 poorer at retirement,” Schubert pointed out.

“Payday super is also tipped to deliver an average of an extra $7,700 for working Australians by retirement. Because being paid your super sooner helps to grow your retirement savings faster.”

MYOB and Xero weigh in

Both accounting software leaders, MYOB and Xero have welcomed the news.

Paul Robson, CEO of MYOB, said in a statement:

“We support the Federal Government’s commitment to improving retirement outcomes for Australians. Our digital solutions are ready for SMEs to adapt to these changes and remain fully compliant when they come into effect.”

In recognition of the economy-wide transition to Payday Super, Robson praised the government for taking “a commonsense approach to compliance timeframes.”

“Small and medium-sized businesses employ around two-thirds of Australia’s workforce, making their readiness essential to the successful rollout of Payday Super. Empowering these businesses to implement the changes effectively will be key to achieving the Bill’s goals.”

Competitor, Xero, also welcomed the introduction of the Payday Super legislation to Parliament.

“Aligning super contributions with pay cycles is ultimately a common-sense move that promises to improve transparency and help reduce unpaid super,” Angad Soin, Managing Director, ANZ & Global Chief Strategy Officer of Xero said.

Xero also acknowledged that the changes may cause some disruption to processes.

“At the same time, we recognise that the proposed changes will result in increased friction for small businesses already facing time, compliance, and financial pressures.

“In anticipation of this reform, Xero has been dedicating resources to making the transition to Payday Super as smooth as possible.

“We are actively collaborating with the government, the ATO, and industry partners. Our focus is to ensure the implementation is fair and practical for both employers and employees, setting every business up for success,” she said.

Protecting the vulnerable

The legislation also aims to ensure certain Australian’s are no longer falling through the ‘missing super crack’.

According to SMC, unpaid super disproportionately affects vulnerable groups. The council noted:

“Among the hardest hit workers are women, who already retire with a quarter less super than men. Younger workers, and low-income earners are also at risk: one in two workers who earn under $25,000 a year have unpaid super entitlements.

“Unpaid super also compounds losses over time, leaving less well-off workers with tens of thousands less money to live on in retirement.

“Payday super is a simple fix.”

With the proposed laws making it easier for employers to stay on top of their cashflow and worker entitlements, SMC hopes to “level the playing field for the many businesses doing the right thing”.

“Payday super is a simple, fair and urgent reform to help ensure every dollar owed to workers makes it into their super account on time and in full. Millions of Australians cannot afford to wait.”

For more information about Payday Superannuation, please visit MYOB’s Payday Superannuation: A Complete Small Business Guide.