iscoverWidespread support for Payday Super has led to the legislation smoothly passing parliament with a start date of 1 July 2026.
‘Let the real work begin’: Payday Super laws pass parliament
06 November 2025
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10 minute read
The implementation of Payday Super has been widely welcomed by the professional and business community, yet there have been numerous calls to alter the start date for small and micro businesses.
Yesterday (4 November), the Treasury Laws Amendment (Payday Superannuation) Bill 2025 passed parliament, which would require employers to make superannuation contributions for their employees at the same time they paid their salary or wages.
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The amendment was first introduced to the House of Representatives on 9 October 2025, before it was passed in the Senate less than a month later on 4 November 2025.
The smooth passage of the bill through both the House of Representatives and the Senate was welcomed by the Association of Superannuation Funds of Australia (ASFA), which described it as a “game-changing reform” for fairness and Australian workers' retirement outcomes.
Mary Delahunty, chief executive of ASFA, said the reform was set to make waves in addressing the problem of unpaid super as the sector commonly saw more than $5 billion in retirement savings withheld from Australian workers each year.
“Payday Super is one of the most significant reforms to the superannuation system in decades, and it’s long overdue. Paying super with wages will make the system fairer, boost retirement balances and ensure super is achieving its core objective,” she said.
“The sector has long advocated for this change, and now that it's law, the real work begins: ensuring regulations are practical, delivering a smooth transition for employers, payroll providers and funds alike. ASFA will lead that work on behalf of the sector.”
Treasurer Jim Chalmers revealed the legislation would ensure a benefit to the retirement incomes of millions of Australians, as the law was all about “reforming our superannuation system to help ensure more Australians get the secure retirement they need and deserve”.
According to Chalmers, while most employers did the right thing, the ATO estimated around $6.25 billion worth of super went unpaid in the most recent financial year data.
“This issue disproportionately affects more vulnerable Australians and women. That’s because those on lower paid, casual and insecure work – who are more likely to be women – are most at risk of missing out on their super,” he said.
“The ATO is consulting on its approach to compliance for the 12 months after the change starts. The ATO’s approach will differentiate between low and high-risk employers. This approach will mean that employers who are making the effort to pay contributions in line with each pay cycle can fall into the low-risk category.”
The Super Members Council (SMC) also joined the chorus commending the passage of the legislation, after the idea was first proposed over two years ago.
The super body noted it would be a huge transformation for the superannuation system as unpaid super costs working Australians up to $110 million a week in unpaid retirement savings.
Misha Schubert, chief executive of the SMC, said the council had championed payday super laws as a key reform to help stamp out unpaid super, coupled with more proactive recovery of unpaid super by the Tax Office.
“This is a historic day which will make a huge difference to help 3.3 million Australians retire with more income to cover the cost of living. The passage of payday super laws will help ensure every dollar owed to millions of workers makes it into their super account on time and in full,” she said.
“Payday Super will also help to deliver an average of $7,700 more for working Australians by retirement, because being paid your super sooner helps to grow your investment returns faster.”
BDO global expatriate and employment taxes partner, James Trainor, said the introduction of Payday Super presented an opportunity for employers to proactively ‘get their house in order’ with respect to superannuation, which could be considered as part of a broader wage compliance and governance process.
“Payday Super represents a fundamental re-write of the statutory regime and brings with it an expectation that employers will implement strong governance over their superannuation processes,” he said.
“The ATO will have increased visibility of superannuation and enhanced data-matching capability, enabling a much more proactive approach to identifying late or missing contributions.”
Despite numerous calls for a phased implementation of Payday Super for small businesses, business, super, and accounting bodies have welcomed the passing of the legislation.
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