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.

The May 2024 Federal Budget maintained the Super Guarantee's legislated increase to 12%. On 1 July 2024 the Super Guarantee increased to 11.5%. It will increase by a further 0.5% on 1 July 2025 to reach 12%.

The increase to the Super Guarantee could make a big difference to super member balances in the long term due to the magic of compound interest.

From 1 July 2025, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent, instead of 15 per cent. This adjustment will affect around 80,000 people in 2025/26.