Workers could be $6000 better off at retirement when major changes to superannuation kick in

From July 1 2026 employers will be required to pay superannuation on payday rather than quarterly.

Major changes to superannuation to make it more "visible" and "meaningful" to workers and help them retire with an extra $6,000 in savings are set to kick in from July 1, 2026, but advocates are hoping the new parliament will pass the laws for the reforms in the first 100 days.

The government last month released long-awaited draft legislation for the superannuation change, which was a key recommendation of the Productivity Commission and saw broad support from employers, employees and unions.

The reforms, first flagged by the government in May 2023, would see employers pay superannuation on payday rather than quarterly.

This change was set to benefit workers by ensuring they do not miss out on unpaid super, which the government said was currently an issue for 1.3 million workers and resulted in about $5 billion a year in lost retirement savings.

Passing the “landmark” legislation in the first 100 days would help plug this “unpaid super drain”, according to the Australian Chamber of Commerce and Industry (ACCI).

“Australian workers will have waited three years for these reforms. Millions of Australians pay the price of unpaid super every single day. They cannot afford any delay,” Super Members Council CEO Misha Schubert said.

“Payday super will dramatically reduce the level of unpaid super, improve compliance with the law and make the super system fairer for workers and businesses alike.”

The Australian Taxation Office (ATO), employers, payroll, digital service providers and super funds would also need to make a “concerted effort” to prepare for the reform.

“[The government] recognises that the transition to CPS will require a significant effort from a range of stakeholders, including the Australian Taxation Office (ATO), employers, payroll, digital service providers and super funds,” the draft legislation read.

The Australian Small Business and Family Enterprises Organisation (ASIOBA) said the move would place a huge administrative burden on small businesses, especially as they would be required to process group contributions into the employee’s super fund within seven calendar days of payday.

“We are concerned about the administrative burden that CPS will place on small businesses, especially the requirement to process group contributions into the employee’s super fund within seven calendar days of payday,” COSBOA chair Matthew Addison said.