The new laws were promised more than two years ago as part of a government response to unpaid super in Australia.
From 1 July 2026, the proposed legislation will require employers to pay their compulsory super contributions into workers' superannuation accounts within seven days of paying their wages.
Currently, super is only legally required to be paid quarterly which can see some employers fall behind on potential market gains and compounding benefits, creating a greater risk of workers being left out of pocket.
Fees charged could also slow gains - or see losses - if super is left untouched for an entire quarter.
Everyday Aussies losing out
The Super Members Council found 3.3 million Australians missed out on $5.7 billion in unpaid super in the 2022-23 financial year alone.
At an average of $1,730 each a year, the Council said it represents a loss of around $30,000 in retirement.
Unpaid super is shown to disproportionately affect tradies, younger workers, and those in low-income, unsecure employment.
The new laws will also also step up employer penalties and charges for late or missed super payments.
Super sector on board
The superannuation industry has welcomed the so-called 'payday super' laws as a simple reform that will help secure the retirement savings of everyday Australians.
Association of Superannuation Funds of Australia CEO Mary Delahunty said the changes will strengthen fairness across the workforce.
"Super belongs to the employee who has earned it, as soon as they've earned it," she said.
"In many cases, the money is held in an employer's bank account for months, earning interest for the employer instead of the employee."
Super balance boost
The Association said the benefits of earlier contributions are expected to compound over time, with modelling showing a 25-year-old on an average wage will retire $5,000 better off with super paid fortnightly instead of quarterly.
The super industry has been preparing for the change since it was first announced in May 2023.
The delayed start date was designed to give the industry, employers, and payroll software providers adequate time to prepare.
In practical terms, it will see employers needing to adjust their payroll systems to ensure the timing of superannuation payments comply with the new laws.
Some businesses may also need to address cash flow issues to ensure they are in a financial position to make timely super contributions.
Stress for small business
While professional accounting body CPA Australia said the new laws are well intentioned, it warns of the potential for unintended consequences.
CPA Australia's superannuation lead Richard Webb said some small businesses will face significant cashflow challenges as they adjust to the new regime.
"[It] requires considerable upfront cashflow and system changes, posing difficulties for small businesses that lack the resources and technological proficiency to adapt swiftly," he said.
CPA Australia had lobbied the government to delay the rollout of payday super for up to two years to prepare for the changes.
"The start date of July 2026 remains a major challenge," Mr Webb said. "A period of chaos could ensue as businesses try to fulfill compliance obligations while trying to balance their books."
The proposed legislation must still be passed by federal parliament before taking effect.
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