Millions of Australians to receive thousands in superannuation following 2026 change

As of July 1, 2026, employers will be required to pay their employees’ superannuation at the same time as their salary and wages, as per an announcement from the Federal Government.

Council on the Ageing (COTA) Australia has welcomed the announcement, which will help secure the retirement of workers throughout the nation, through making employers pay super contributions on pay day, rather than quarterly.

If companies pay the required superannuation on the existing quarterly basis, the risk of unpaid superannuation debt can lead to difficulty in following up with companies which go bankrupt or enter a state of insolvency.

Additionally, workers will be able to see their superannuation contributions on payslips, making it easier for them to follow up with tracking payments made by their employer.

Chief Executive Officer (CEO) of COTA Australia, Patricia Sparrow, says the change is “simple,” yet will benefit workers over time.

“Everyone deserves to live comfortably in retirement and while of course this won’t solve all the problems people face when it comes to retirement income, it’s certainly a very sensible step forward,” says Ms Sparrow.

“Paying superannuation infrequently leads to people ending up with less in their accounts when they reach retirement and we know that it is women and those in casual, lower-paid work who are hit hardest by that.”

However, recent reports from the Australian Prudential Regulation Authority (APRA) show that it doesn’t just matter whether you’re getting paid superannuation, but where that nest-egg is being kept.

New data from the APRA hotspot report of superannuation products across funds has found that one-in-five Choice superannuation products (with an 8-year history) are underperforming, yet the funds still charge high administrative fees to unsuspecting workers.

Closed Choice funds are chosen by the employee (as opposed to the default MySuper option, which employers opt into on the employees’ behalf) and are closed to new customers, which may be the result of poor financial management.

The APRA report found:

• 28 percent of closed Choice funds were underperforming
• A further 39 percent were significantly falling short of the APRA standards
• 22 funds falling within a 0.5 percent margin of error
• 31 funds were exceeding the margin of error

New data from the Association of Superannuation Funds of Australia (ASFA) in the Retirement Standard report also suggests that the amount of money needed to retire has increased due to inflation.

Speaking on behalf of ASFA, Deputy CEO Glen McRea says that the payday superannuation announcement will guarantee thousands of dollars in retirement savings for millions of Australians.

“Requiring employers to pay [superannuation] at the same time as wages will make it easier for employees to monitor the [superannuation] compliance of their employer and for the ATO to compare superannuation payments with wage payments,” says Mr McRea.

“It will limit build-up of [superannuation] liabilities and hold employers to account.”

From July 2021 until mid-2025, the required superannuation guarantee (what employers have to contribute to an employee’s fund) will continue to rise from 9.5 percent to 12 percent of their overall wage, increasing by half a percent each year.