New changes to superannuation introduced

On 9 October 2025, the Labor Government introduced its Treasury Laws Amendment (Payday Superannuation) Bill 2025 to Parliament. 

The Bill passed both Houses on 4 November 2025, and its date of assent was 6 November 2025. As a result of this new legislation, from 1 July 2026 employers will be required to pay super contributions to their employees’ funds within 7 business days of paying those employees’ salaries and wages. If employers fail to do so then they will be liable for the superannuation guarantee charge, which is also being increased. This change has been dubbed “payday super”.

By introducing this change, the government hopes to address the issue of unpaid super, which was estimated at being $5.1 billion in 2021-2022. By being paid their super contributions sooner, it is also anticipated that workers will end up with more retirement savings as their contributions will be able to accrue and compound more frequently.

Other changes to the superannuation system which have been proposed (but not yet passed as law) by the Labor Government include:

• From 1 July 2027, the low income superannuation tax offset will be increased from $500 to $810, and its eligibility threshold will be increased from $37,000 to $45,000. This means workers earning less than $45,000 a year will be eligible to receive a $810 tax offset that is paid directly to their super fund.
• From 1 July 2026, superannuation balances exceeding $3 million will be taxed at a total rate of 30%.
• From 1 July 2026, superannuation balances exceeding $10 million will be taxed at a total rate of 40%.
• Both the $3 million and $10 million superannuation balance thresholds will be indexed and increased over time.

Employers need to be aware of the new payday super change and begin making the necessary changes in their payroll systems to comply.

Need help?

For advice on your superannuation obligations or other pay-related concerns, please contact Renae Harding Partner or Grace Pham Lawyer Workplace Relations & Safety.