Helping your business navigate legislative change with confidence, ensuring you are prepared and compliant every step of the way.
What Employers Need to Know
The Federal Government has proposed changes to how employers pay mandatory super contributions for their employees which are expected to commence from 1 July 2026.
Under the proposed changes, employers will be required to pay superannuation guarantee (SG) contributions on employees’ payday. This replaces the current quarterly payment schedule.
Employers must ensure contributions reach the employee’s super fund within seven calendar days of payday to avoid late payment penalties. There will be some exceptions to this rule, including payments to new starters and out-of-cycle payments.
Key Requirements for Employers
It’s a pleasure to work with the team at IFS Unpaid Super. They’re always supportive of our fund and work with us to deliver valued services that bring important benefits to our members.
Launching in January 2026, this campaign will proactively contact employers with existing arrears to assess their readiness for Payday Super. Our team will gather insights on current and future pay cycles, provide educational resources, and offer chatbot support to answer employer queries. The campaign will also include email banners to raise awareness and deliver fund-level reporting on employer engagement.
From FY27, IFS will roll out an education-focused outreach program targeting employers with overdue contributions. This initiative will prioritise employers based on size and fund requirements, offering guidance on voluntary disclosure obligations and calculating estimated interest. The goal is to reduce arrears by educating employers, while enhancing data quality for fund reporting.
IFS will continue to deliver targeted arrears recovery through a multi-channel approach. Employers will receive timely reminders via SMS and calls, assistance with payment allocation, and follow-up communications. If contributions remain unpaid, we will escalate the matter through demand letters and Australian Taxation Office (ATO) referrals.
For cases where recovery efforts have been exhausted, IFS offers legal and insolvency pathways to pursue outstanding entitlements. We also support employers in completing voluntary disclosure documentation, helping them self-correct before ATO intervention.
Payment
Timing
SG contributions must be received by the employee’s super fund within 7 calendar days of payday. Quarterly payments will no longer be accepted.
Superannuation Payment Shortfalls
Will need to be disclosed to the ATO using a voluntary disclosure statement (instead of the existing SG statement).
Penalties
Daily interest will accrue on late or missed payments from the day after the due date. Employers may also incur further interest and other penalties if the SG Shortfall is not paid in full within 28 days of an assessment notice.
Exceptions
Limited extensions apply for new employees and certain irregular payments (e.g., bonuses, commissions).
Why This Matters
The Federal Government’s legislation aims to create a fairer system for employees, to address the issue of unpaid and underpaid superannuation.
The Australian Taxation Office (ATO) estimates that $3.4 billion of super was unpaid in 2019-20. The introduction of payday super means approximately 8.9 million people will benefit from earlier and more frequent super payments, improving retirement outcomes for working Australians.
How to Prepare
Although this legislation is still in draft, now is the time to understand the key changes and how these will impact your business.
Plan for the new payment frequency
Consider the impact on your business cashflow of paying your super more frequently. You could consider aligning your super payments to your pay cycle ahead of the 1 July 2026 start date, so that you are ready ahead of time.
Review your payroll systems
Conduct a review of your current payroll system to see if it will be payday super compliant and identify any updates required. Ensure that your Single Touch Payroll (STP) reporting includes SG Liabilities.
Small Business Clearing House
The ATO small business clearing house is being retired on 1 July 2026. If you currently make payments using this service, please contact your super fund prior to this date who can discuss an alternative solution with you.
Keep up to date with the latest changes. The ATO and Treasury have released guidance and resources to help employers transition smoothly:
Key Dates
Date
Milestone
1 July 2026
ATO Small business clearing house closes
1 July 2026
Payday Super expected to take effect
IFS Support for Employers
IFS works with its clients to collect unpaid super on behalf of your employees. In FY25, IFS collected over $226m in unpaid super which was paid directly into the super accounts of members.
IFS is working with its clients to help get their employers ready for payday super. We are launching an employer education-based approach to super recovery. We want to make sure you are equipped with the support you need to achieve compliance with the proposed legislation.
You can
contact us for further information.
Disclaimer:
The information on this page is general in nature and based on proposed legislative changes as at the date of publication. It is provided for informational purposes only and may be subject to change. Industry Fund Services Limited does not accept liability for any loss arising from reliance on this information.
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