From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.
Employers will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ super funds within seven ordinary or calendar days of payday (with some limited exceptions).
Payday is the date that an employer makes an ordinary time earnings (OTE) payment to an employee.
The super reform will provide employees the benefits of receiving their super earlier and more frequently, and the more immediate tracking of the payment of their entitlements.
It is also hoped that more frequent super payments will make employers’ payroll management smoother with reduced super liabilities building up.
This super payment reform is intended to complement the Government’s other actions to strengthen the super system, including increasing the SG rate to 12% by 1 July 2025. This measure is not yet law, with legislative design intended to progress through the second half of 2024 with industry consultation.
November 2024