A win for workers: Payday Super becomes law
25 June 2026
From 1 July 2026, a major improvement to Australia’s superannuation system comes into effect: employers will be required to pay superannuation at the same time as wages, rather than making contributions quarterly.
Known as Payday Super, this important change is the result of years of campaigning by unions to ensure workers receive their super sooner and reduce the risk of unpaid super.
As a union-driven reform, the IEU moved quickly to pursue Payday Super provisions in employer negotiations once the commencement date was announced. The IEU has already secured Payday Super clauses in approved Enterprise Agreements, ready for the 1 July commencement.
A win for women
This Payday Super reform is particularly important for women, who make up the majority of IEU members. Women continue to retire with significantly less superannuation than men, largely due to lower lifetime earnings, career interruptions and caring responsibilities.
Research cited by the Australian Council of Trade Unions (ACTU) estimates the retirement income gap between men and women remains around 25 per cent. Receiving super contributions earlier and improving compliance will help strengthen women’s retirement outcomes over time.
A win for young workers
For workers, particularly those early in their careers, the benefits can add up over a lifetime. Treasury estimates that a 25-year-old median income earner paid fortnightly could be around $6,000, or 1.5 per cent, better off at retirement because super contributions are invested earlier and have more time to grow through compound returns.
Spot unpaid super sooner
Payday Super is also designed to tackle the ongoing problem of unpaid super. The Australian Taxation Office estimates billions of dollars in superannuation go unpaid each year. When super is not paid, the long-term impact can be substantial.
Treasury estimates that recovering unpaid super for a typical 35-year-old worker can improve their retirement balance by more than $30,000 in today’s dollars.
Under the new laws, employers will generally need to ensure super contributions are received by an employee’s super fund within seven calendar days of payday.
Members are encouraged to regularly check their payslips and superannuation account to ensure contributions are being paid correctly.
If you have concerns about unpaid or late superannuation, contact the IEU on 8410 0122 or enquiries@ieusa.org.au
Further reading
Fair Work Ombudsman – Payday Super
https://www.fairwork.gov.au/newsroom/news/payday-super-new-rules-starting-1-july-2026
Australian Taxation Office – Preparing for Payday Super
https://www.ato.gov.au/media-centre/ato-calls-on-employers-to-prepare-for-payday-super
Australian Taxation Office – About Payday Super
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/payday-super/about-payday-super
Australian Council of Trade Unions – Minding the Gap
https://www.actu.org.au/wp-content/uploads/2024/11/Minding-the-Gap.pdf
Treasury – Introducing Payday Super
https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/introducing-payday-super
Treasury – New legislation passes to ensure super is paid on time
https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/media-releases/new-legislation-passes-ensure-super-paid-time
