Govt’s payday super mandate embraced

Industry bodies and superannuation funds have unanimously sounded their acceptance of the Government’s announcement it will mandate the payment of superannuation in alignment with wages.

The Australian Institute of Superannuation Trustees (AIST), Financial Services Council (FSC), Association of Superannuation Funds of Australia (ASFA), HESTA and Rest Super have become the latest to welcome the Government’s decision which will commence from 1 July 2026.

AIST chief executive Eva Scheerlinck said the change would only improve the retirements of millions of working Australians.

“We know the majority of employers do the right thing but some do not and, given superannuation is deferred wages, it makes sense that it be paid at the same time as salary and wages,” she said.

“Historically, there has been an argument that paying more frequently than quarterly would be a burden on employers. However, since the introduction of digital initiatives such as SuperStream and single-touch-payroll, paying super is part of an automated process, requiring no additional manual effort.

“It will also give employees and the Australian Taxation Office earlier visibility of under-payment or non-payment of super, meaning it can be followed up more quickly with the employer and not left to balloon into serious non-payment.”

Blake Briggs, FSC CEO, highlighted the council’s intention to work with Government to implement the new measure.

“This is a sensible change flagged by the Government that will improve transparency and consumer engagement in the superannuation system. Aligning the timing of when employers are required to pay superannuation with wages will make it easier for people to keep on top of their superannuation,” he said.

“The Government has also shown regard to the needs of small businesses by providing a considerable implementation timeframe.”

ASFA said it had long advocated for a proposal to improve compliance and payment of the Superannuation Guarantee (SG), with the current proposed measure set to also assist the Australian Taxation Office (ATO) detect and recover unpaid super.

“Requiring employers to pay SG at the same time as wages will make it easier for employees to monitor the SG compliance of their employer and for the ATO to compare superannuation payments with wage payments. It will limit build-up of SG liabilities and hold employers to account,” ASFA Deputy CEO Glen McCrea said.

“Given the significance of the problem, a multi-faceted approach is needed. A sharper focus on recovery of unpaid SG by the ATO is one of the most effective means of driving down the SG gap for the benefit of employees.”

Debby Blakey, CEO of HESTA, said the change is important to create “a level playing field for all”.

“HESTA welcomes the Federal Government’s announcement of reforms requiring compulsory Super Guarantee contributions to be paid to super accounts at the same time as wages, which will benefit women and low-paid workers.

“I commend the Federal Government for tackling the issue of improving the cycle of payment of super to maximise the best retirement outcomes, as this is money working Australians are entitled to.”

Rest chief executive, Vicki Doyle, commended the Government for making “super fairer for all Australians”.

“Many of our members will directly benefit from this change, including by unlocking the power of compounding interest returns on more frequent Superannuation Guarantee contributions,” she said.

“The change will make it easier for members to track the contributions received into their superannuation account and check that payments have come through as expected. This is especially important for casual workers, whose hours can vary significantly from week to week.