Most Aussies unaware of looming Payday Super changes, survey finds

A recent survey has indicated that 80 per cent of Australian employees were unaware of Payday Super reforms due to take effect from July.

Research from HR platform Employment Hero has found that 80 per cent of Australian employees and 58 per cent of Australian businesses are unaware of Payday Super reforms, due to take effect from 1 July 2026.

Under the legislation, passed in November 2025, employers will be required to pay employees’ super at the same time as their salary and wages, instead of on a quarterly basis. Firms would face penalties if contributions did not arrive in employees’ super funds within seven days of payday.

With the change due to take effect mid-year, Employment Hero’s survey of 500 Australian businesses and over 1,000 employees found that awareness of the change remained low.

Rob Dunn, Employment Hero’s general manager of superannuation, payments and benefits, said the reforms were a good thing for Aussie workers but businesses needed more support to meet the looming deadline.

“Payday Super is one of the most positive reforms for working Australians in decades. More frequent contributions mean better visibility, fewer lost accounts, and ultimately, healthier retirement savings for millions of people,” Dunn said.

“The challenge is that with just over four months to go, nearly six in 10 employers still don’t know about this change. It’s not a reflection of unwillingness – businesses need clearer guidance and smarter tools to get ready in time.”

Employment Hero found Payday Super, which the Australian Taxation Office (ATO) has described as a “once in a generation” change, was still shrouded by practical concerns. A majority (70 per cent) of businesses were worried about their ability to stay on top of shifting requirements, and 36 per cent of employees were concerned about their employer’s ability to implement the changes.

Given that 70 per cent of employers paid their employees’ super quarterly, according to Employment Hero’s payroll data, the HR platform estimated that approximately 4.5 million Australians would be affected by Payday Super.

It estimated that small and medium enterprises (SMEs) would need an average of $124,000 in additional working capital to manage the transition and meet timing requirements. Furthermore, almost half (40 per cent) of businesses reported they may need access to credit or financing to support cash flow during the transition.

With the ATO’s Small Business Superannuation Clearing House due to close on 1 July, Employment Hero warned that small businesses were facing a “perfect storm” of regulatory change and reduced support.

Under the new laws, the penalties for super non-compliance would be steeper. Employment Hero found that 84 per cent of businesses reported frustrations with their current super processes, with returned funds due to errors (63 per cent) and manual processing steps (60 per cent) listed as the top issues.

Speaking to HR Leader’s sister brand, Accountants Daily, ATO Deputy Commissioner Emma Rosenzweig urged employers to start testing out their systems so they are ready to comply with Payday Super rules by 1 July 2026.

“We do know that all the payroll software that businesses rely on is being updated as we speak. And so some employers might need a bit more time to make sure they get their reporting [systems] right, they might need a bit more time to test and deploy once those software changes have been made,” she said.

“This is a really great time to fix [errors] up and work out what’s driving those errors … and make sure they’ve got it right before the payday super cycle starts and they’re having to make much more regular payments.”