Industry funds win on pay day super

In what represents a victory for the industry funds lobby, the Government’s Treasury Laws Amendment (PayDay Superannuation) Legislation passed the Senate yesterday.

Passage of the bill was immediately welcomed by the Association of Superannuation Funds of Australia (ASFA) with its chief executive, Mary Delahunty saying the change would go some way to address the problem of unpaid superannuation while the Super Member Council chief executive, Misha Schubert described it as a commonsense reform and a simple fix.

Accountancy group the Institute of Public Accountants had called for a phased approach to pay day superannuation under which smaller companies would be given more time to comply.

Under the legislation, employers will be required to pay their superannuation guarantee obligation in line with their payrolls from 1 July, next year.

ASFA’s Delahunty described the legislation as one of the most significant reforms to the superannuation in decades and something that was 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,” Delahunty said.

She noted that ASFA has been coordinating a comprehensive industry-wide implementation program through ASFA InPractice to prepare for the 1 July 2026 start date.

Delahunty said this work includes three critical workstreams: finalising regulatory frameworks, implementing SuperStream v3 and technology infrastructure upgrades, and rolling out communication and education programs for funds, employers, and service providers.

“Our focus now is practical delivery. The detail in the regulations is now crucial as we work to help every part of the system prepare for this change. We’ll be working closely with Treasury, the ATO and our members to ensure it’s done efficiently and effectively,” Delahunty said.