'We want employers to start planning for Payday Super now to ensure they are prepared for when the law takes effect'
The Australian Taxation Office (ATO) is encouraging employers to plan ahead of the implementation of the newly passed Payday Super mandate in July 2026.
"Simply put, Payday Super is about paying super on payday. Don't wait until the last minute, we want employers to start planning for Payday Super now to ensure they are prepared for when the law takes effect," said Emma Rosenzweig (pictured above), deputy commissioner at the ATO, in a statement.
"You don't have to wait to start paying super contributions more regularly. Many employers are already paying on payday."
The Payday Super mandate, which passed Federal Parliament last week, requires employers to pay their employees' super at the same time as their salary and wages.
The change will give the ATO earlier visibility of underpayment or non-payment of super, according to Rosenzweig.
"This is a critical change in addressing unpaid super and deterring non-payment by employers while ensuring employees are fully compensated for any delays in receiving their super," the deputy commissioner added.
The ATO is eyeing a compliance approach in the first year of the mandate's implementation, where employers who do the right thing and resolve any issues quickly will not be the focus of compliance action.
Rosenzweig said the ATO is working closely with industry groups, tax professionals, digital service providers, and super funds to help prepare managers for the July 1 implementation.
"We'll be finalising clear guidance on factors we will consider in our compliance approach," Rosenzweig said.
Payday Super mandate
The Payday Super aims to address the billions of super entitlements that millions of Australians miss out on because of unpaid super.
In 2022-23, 3.3 million Australians missed out on $5.7 billion in unpaid super, with an affected employee missing out on $1,730 on average.
Treasurer Jim Chalmers said the change will strengthen Australia's superannuation system and deliver a more secure retirement to workers.
"Employees will benefit from more frequent and earlier super contributions that will grow and compound over their working life," Chalmers said.
