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Payday Super
update

Although the Payday Super reforms won’t take effect until 2026, we’re sharing early insights to help you prepare.

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At Hostplus, we’re committed to keeping you informed about important superannuation changes, like the Payday Super reforms announced in the 2023 Federal Budget. While these changes aren't set to take effect until July 2026, we want to help you prepare for this transition. 

What is Payday Super?

Superannuation payments will change with the introduction of Payday Super from 1 July 2026. This will align Superannuation Guarantee (SG) payments with regular pay cycles. Payday Super aims to address the non-payment and underpayment of super, strengthening Australia's superannuation system and improving retirement outcomes for workers. 

What you need to know

Under the new framework, employers will need to pay SG contributions simultaneously with salary and wages, replacing the current system where super must be paid at least quarterly. Crucially, contributions must reach employees' superannuation funds within seven calendar days of payday to meet compliance requirements. 

Key changes for employers

The framework proposes several changes designed to facilitate the transition. 

Revised rules around an employee’s choice of super fund

New responsibilities for employers aimed at streamlining and reducing the administrative burden will be introduced. These include making an employee’s existing 'stapled' fund visible during onboarding. 

Updated SuperStream standards

The SuperStream data and payment standards will be revised to improve error messaging for quick resolution of payment issues.

Updated SG charge

Employers will face an updated SG charge if they fail to pay contributions in full and on time. The size of the penalty will depend on how long and by how much the employer was non-compliant. The Australian Taxation Office (ATO) will administer compliance and provide support for these changes.

Compliance and support

The ATO will oversee compliance through enhanced monitoring systems, matching Single Touch Payroll data with superannuation fund reporting. While penalties will apply for non-compliance, the framework includes provisions for reduced penalties when employers promptly disclose any payment issues.

What happens next?

The legislative design process continues, with ongoing industry consultation to refine administrative details. This consultation period ensures all stakeholders can contribute to creating a practical and efficient system before the July 2026 implementation date. 

Our commitment to our employer partners

As your superannuation partner, we understand this change to payment processes is significant. The framework provides high-level information, but we know you need clarity on specific operational details. We'll share updates and practical guidance as more information becomes available to help you prepare for and implement these changes effectively. 

Stay connected with us as we work to make this transition as smooth as possible for you. If you have any questions, contact our dedicated business team online or by calling 1300 467 875. We're here to support our valued employers throughout this transition period and beyond. 

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