Superannuation peak body ASFA has welcomed the passage of the Treasury Laws Amendment (Payday Superannuation) Bill through the Senate today, describing it as a game-changing reform for fairness and Australian workers’ retirement outcomes.
ASFA Chief Executive Officer Mary Delahunty said the reform will go some way to address the problem of unpaid super, which sees more than $5 billion in retirement savings withheld from Aussie workers each year.
“Payday Super is one of the most significant reforms to the superannuation system in decades, and it’s long overdue. Paying super with wages will make the system fairer, boost retirement balances, and ensure super is achieving its core objective.
“The sector has long advocated for this change, and now that it’s law, the real work begins: ensuring regulations are practical, delivering a smooth transition for employers, payroll providers and funds alike. ASFA will lead that work on behalf of the sector,” Ms Delahunty said.
Industry ready for major transformation
ASFA has been coordinating a comprehensive industry-wide implementation program through ASFA InPractice to prepare for the 1 July 2026 start date. This work includes three critical workstreams: finalising regulatory frameworks, implementing SuperStream v3 and technology infrastructure upgrades, and rolling out communication and education programs for funds, employers, and service providers.
“This is the most significant operational transformation the industry has faced since SuperStream, but we’re well-practised at implementing change at scale,” Ms Delahunty said.
“Our focus now is practical delivery. The detail in the regulations is now crucial as we work to help every part of the system prepare for this change. We’ll be working closely with Treasury, the ATO and our members to ensure it’s done efficiently and effectively,” Ms Delahunty said.
Benefits for Australian workers
ASFA has consistently supported the introduction of payday super since 2018, highlighting its benefits for young workers, women, tradespeople, and those in casual and lower-paid roles.
“This reform will particularly benefit younger Australians and tradies, who are more than twice as likely to miss out on super payments. Payday Super makes it easier for workers to track whether they’ve been paid correctly and take action if they haven’t.
“Every dollar paid on time grows in their account through compounding returns, not in their employer’s bank account. For a 25-year-old on average wages, that will mean around $5,000 more in retirement just from more frequent payments,” Ms Delahunty said.
For further information, please contact:
ASFA media team
0451 949 300
mediaunit@superannuation.asn.au
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.