The Federal Government’s “Payday Superannuation” laws will come into effect from July 1, 2026. The Federal Government has introduced these new provisions to align employers’ payment of Superannuation Guarantee (SG) contributions, with an employee’s payday, on which they receive their salary or wages.
These changes will also impact how superannuation payments are calculated and create new penalties where employers are found to be not complying with the relevant provisions.
Currently, employers are required to pay employees’ superannuation contributions into the employee’s nominated account, at least quarterly (every three months).
Under the new Payday Superannuation laws employers will be required to make superannuation contributions at the same time an employee is paid their salary or wages. This is so that superannuation contributions reach the employee’s nominated account within seven business days.
There are some limited exceptions to these requirements, including newly engaged employees. For these employees, an employer will need to make the employee’s first superannuation contribution, within 20 business days of their salary or wages being paid.
Currently, superannuation is calculated as 12% of an employee’s ordinary time earnings (OTE). OTE is defined in the Superannuation Guarantee (Administration) Act 1992 as what an employee is paid for their ordinary hours of work, including commissions and shift loadings, as well as certain types of paid leave, allowances, bonuses and lump sum payments.
From July 1, 2026, superannuation will be calculated as 12% of Qualifying Earnings (QE). QE will include an employee’s OTE, as well as a number of other payments, including:
The Australian Taxation Office (ATO) is the primary enforcement agency for the compulsory superannuation guarantee. The ATO is responsible for implementing the new rules and has prepared a fact sheet about these upcoming changes (see link below).
The “Payday Superannuation” laws also introduce more severe penalties for employers that are not complying with their superannuation obligations. From July 1, 2026 the Super Guarantee Charge (SGC) will apply when amounts aren’t received by a superannuation fund within seven business days of payday.
From July 1, 2026, the SCG:
From July 1, 2026, employer penalties for non-compliance are 25% or 50% of the unpaid SGC, depending on any prior penalties.
More frequent payment of superannuation will empower employees to track their entitlements and make it harder for them to be exploited. Employees will be able to see these payments by reviewing their superannuation account transactions and will be able to hold employers to account by raising non-compliance directly, the Fair Work Ombudsman (FWO) or the ATO.
Previously, superannuation would be payable for the bonuses / commissions in the majority of circumstances. However, this was not the case when these bonuses / commissions were related to work performed entirely outside ordinary hours.
Under the new Payday Superannuation laws, superannuation will now need to be paid on all commission paid to an employee. This is especially relevant for the real estate industry given commission arrangements are widely used (eg. commissions-only sales representatives).
REEFWA members will need to review these arrangements to ensure that from July 1, 2026, they are being paid superannuation in accordance with the new laws.
Employers should begin reviewing their payroll systems and business processes to make sure they will be compliant.
At Business Law WA, our team of workplace relations experts can assist your business with managing these new Payday Superannuation laws and are compliant with the relevant legislation and industrial instruments. We can provide legal advice on:
Contact the Business Law WA team on 08 9365 7746 or at businesslawwa@cciwa.com for further information.
See also:
CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.
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