Empowering HR to Lead Australia’s Move to Timely Super Payments

Payday Super is one of the most significant workplace reforms in decades, requiring all employers to pay superannuation guarantee (SG) contributions on each payday rather than quarterly from 1 July 2026. This shift aligns super payments with wages, reduces the risk of unpaid super and increases transparency for employees, all outcomes that strengthen trust in the employment relationship.

For HR professionals, this is much more than a payroll process change. It’s a people and culture transformation that will influence employee communication, engagement and financial wellbeing. Ensuring a smooth transition will require HR leadership in policy planning, change management and collaboration across payroll and finance.

Payday Super requires employers to pay SG contributions, currently 12% of qualifying earnings, into employees’ super funds within seven business days of each payday. This new cadence demands that payroll systems calculate, process and reconcile super every pay cycle. HR teams must be ready to review employment contracts, pay policies and onboarding materials to ensure they reflect the new legislative requirements.

The cash flow impact on employers means stronger alignment between HR, payroll and finance is vital. Funds must be available alongside wages each pay period, which may particularly challenge smaller organisations. HR leaders should work closely with finance to anticipate potential impacts, update workforce budgeting models and maintain employee confidence through transparent communication.

The Maximum Superannuation Contribution Base (MSCB) limits the maximum earnings on which SG must be paid. While previously discussed as a quarterly cap at $62,500, it is important to note the MSCB will apply as an annual cap from the 1st of July. This may affect some employees who are on a total remuneration package (TRP).

The Australian Payroll Association (APA) continues to represent payroll professionals through its involvement in the ATO’s Payday Super Working Group, ensuring that employer perspectives shape the design and rollout of the reform. To prepare the workforce, APA provides regular webinars and training resources that help HR and payroll teams navigate operational, technical and compliance implications.

HR plays a pivotal role in helping employees understand the benefits of Payday Super. Communication strategies should explain how super will now be in their super accounts more regularly from the 1st of July, promote verification of super fund details and highlight the advantages of receiving more regular contributions. Supporting payroll teams through targeted training and clear communication frameworks will strengthen compliance and reinforce organisational trust.

Payday Super redefines payroll operations and employee experience. With active HR leadership, organisations can turn this compliance change into an opportunity to build stronger financial transparency, enhance employee engagement and support a culture of trust, well before the 1 July 2026 deadline.

Stay current with payroll legislation changes, best practice guidance and ongoing expert support. Join APA today: https://austpayroll.com.au/membership