Proposed changes

From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. This change will help address the $5 billion a year scourge of unpaid super by making it easier for workers to keep track of payments and for the Australian Taxation Office (ATO) to monitor compliance. It will also reduce the risk of businesses building up large super contribution liabilities at the end of each quarter. This move will also lead to higher returns for more than 4 million Australians currently receiving their super quarterly, as super paid more frequently compounds faster.

The 2024 budget provided $60 million to support employers to implement payday super contributions.

A new measure proposed prior to the May 2023 federal budget, will see the concessional tax rate applied to future earnings for balances above $3 million changed to 30 per cent, instead of 15 per cent. This adjustment would affect around 80,000 people in 2025/26. This measure was scheduled to begin from 1 July 2025, however it is not yet law.