unpacking payday super

From 1 July 2026, legislation will change to align superannuation guarantee payments with salary or wage cycles, removing the option to pay super separately (e.g. fortnightly, monthly or quarterly).

This change will benefit around 8.9 million employees by ensuring this money goes into their accounts earlier and starts getting invested sooner, which will help grow their long-term retirement savings.

The Australian Government estimates that a 25-year-old median income earner currently receiving their super quarterly could be around $6,000 or 1.5 per cent better off at retirement due to this change¹.

Payday super will also make it easier for employees to track their super payments, reducing the risk of exploitation and unpaid super, which in 2020-21 was $3.6 billion².

For employers, this change is anticipated to simplify payroll management and reduce liabilities.

HESTA welcomes this announcement, which is particularly beneficial for lower-paid, part-time, and casual workers, where women are overrepresented.

Nearly 80% of HESTA members are women, and many face lower wages as well as time out of the workforce for caregiving responsibilities.

These and other factors contribute to the gender super gap which sees women retire with around 25% less super than men³.

These reforms are a positive step toward better retirement outcomes for HESTA members and all Australians.

We’ll support HESTA employers in navigating this change so they can continue to efficiently meet their super obligations.

We expect further details will be finalised by the government in coming months to support a 1 July 2026 start date and will communicate these updates to you to help you prepare.