The Clock Is Ticking on Super Changes | the Advisory

Why It Matters

The change accelerates retirement savings for workers and reduces unpaid-super leakage, but creates immediate operational and cash-flow pressures for businesses that must rapidly adapt payroll systems or risk significant penalties and regulatory scrutiny.

Summary

From July 1 Australia’s “payday super” regime requires employers to remit superannuation within seven days of each payday, moving away from quarterly contributions and leveraging the existing MPP real-time payments platform. The reform broadens who is treated as an employee and expands superable earnings — including more commissions and bonuses, with the quarterly cap replaced by an annual assessment. Employers face tighter windows to process payments, heavier visibility to regulators, and potentially compounding interest and stiffer penalties for late or missing payments. Sectors with tight margins, seasonal cash flow or heavy contractor use such as hospitality, retail, construction and professional services are most exposed and must update pay codes, onboarding and run test payments urgently.

Original Description

Janine Thompson from McGrathNicol outlines that from 1 July, employers must pay superannuation within seven days of payday, rather than quarterly. Thompson states this shift is designed to reduce unpaid super and improve retirement outcomes, as contributions hit employee accounts sooner and start compounding earlier. She highlights that the new payments platform, operating since 2018, supports real-time, data-rich transfers that align well with the Payday Super framework.

Thompson notes two main benefits for employees: faster detection of unpaid super by regulators and improved long-term balances as contributions are made more frequently. She adds that super will apply more broadly to commissions and bonuses, with quarterly caps scrapped in favour of an annual cap, so a greater proportion of one-off payments may attract super contributions.

On the employer side, Thompson argues that preparation is mixed, with some sectors more exposed than others. Hospitality, retail, construction and professional services are flagged as vulnerable due to tight margins, seasonal cash flow and high contractor use, particularly as the definition of “employee” widens. Thompson urges businesses to review pay codes, confirm which payments attract super, tighten onboarding processes and run test payments to avoid stricter penalties and compounding interest on late or unpaid super.