Ensure employees have greater visibility over whether their entitlements have been paid and better enable the ATO to recover unpaid superannuation.
From 1 July 2026, employers will be required to pay their employees' SG entitlements on the same day that they pay salary and wages. Currently, employers are only required to pay their employees' SG on a quarterly basis. By increasing the payment frequency of superannuation to align with the payment of salary and wages, this measure will both ensure employees have greater visibility over whether their entitlements have been paid and better enable the ATO to recover unpaid superannuation. Increased frequency of payment will also support better retirement outcomes. A 1 July 2026 commencement date will allow the ATO, payroll service providers and superannuation funds time to make necessary system changes and for employers to adjust their cash flow practices. Changes to the design of the SG charge will also be necessary to align with increased payment frequency. The Government will consult with relevant stakeholders on the design of these changes, with the final design to be considered as part of the 2024-25 Budget. These changes are estimated to increase receipts by $835.0 million and decrease payments by $285.0 million in 2026-27, due to the bring forward of superannuation tax receipts on SG contributions. However, this effect will be immediately offset by the associated company tax deductions of SG payments in 2027-28. Over the medium-term from 2022-23 to 2033-34 the proposal is estimated to reduce the underlying cash balance by $256.6 million as there will be less SG charge debt raised due to increased compliance. The Government will also provide $40.2 million to the ATO in 2023-24, which includes $27.0 million for the ATO to improve data matching capabilities to identify and act on cases of SG underpayment by employers and $13.2 million for consultation and co-design. In total, this package is estimated to increase receipts by $835.0 million and decrease payments by $243.1 million over the 5 years from 2022-23. This package will particularly benefit those in lower paid, casual and insecure work who are more likely to miss out when super is paid less frequently. Treasury | The package will also deliver on the Government's election commitment to set public targets for the ATO on recovering unpaid superannuation. The ATO will report annually against new measures set out in the Treasury Portfolio Budget Statement.