Upcoming Superannuation Changes
What Australian Businesses Need to Know
Superannuation isn’t something most business owners think about daily; until legislation changes.
Over the next two years, several important updates to Australia’s super system will come into effect. Some are already locked in, others are progressing through Parliament - but all are worth understanding early so you’re not caught off guard.
Here’s a simple breakdown.
Payday Super – Starts 1 July 2026
From 1 July 2026, employers will need to pay Superannuation Guarantee (SG) contributions at the same time they pay wages, instead of quarterly.
This reform, referred to as “Payday Super” means super must be received by an employee’s super fund within 7 business days of payday.
The goal is to reduce unpaid super and ensure employees receive their entitlements sooner, allowing their retirement savings to grow earlier through compounding.
Read the Fair Work Ombudsman update here:
https://www.fairwork.gov.au/newsroom/news/payday-super-new-rules-starting-1-july-2026
The Australian Taxation Office also outlines the legislative changes here:
https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation
Super Guarantee Rate Now at 12%
In effect from 1 July 2025, the Super Guarantee rate has increased to 12% of ordinary time earnings.
This is now the standard minimum contribution rate employers must pay.
Boost to Low Income Superannuation Tax Offset (LISTO)
From 1 July 2027, the government will increase support for lower-income earners through changes to the LISTO scheme.
The income eligibility threshold will increase from $37,000 to $45,000.
The maximum offset will rise from $500 to $810.
This is designed to improve fairness within the system and ensure low-income workers don’t pay more tax on super than on their take-home pay.
Download the Treasury fact sheet:
https://treasury.gov.au/policy-topics/superannuation/reforms-support-low-income-workers-build-stronger-super-system
Proposed Changes for Large Super Balances
Legislation is also progressing to adjust how earnings on super balances above $3 million are taxed. If passed, higher tax rates would apply to earnings above certain thresholds from the 2026 - 27 financial year.
Review the Parliamentary overview here:
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2526/26bd048
How Does This Affect Small Business?
Many business owners are left scratching their heads with the change. While it means that yes, this change is a positive for employees, it does mean for some businesses a juggling act when it comes to cashflow - timing and payroll processes.
Moving from quarterly super payments to payments each pay cycle does not increase the overall cost of super - but it does change when the money leaves your business.
For small businesses operating with tight margins or fluctuating staffing levels (construction, hospitality, trades, seasonal businesses), this timing shift can affect:
Weekly cashflow planning
Working capital management
Payroll system setup
Administrative workload
If your payroll processes are manual or partially manual, this change could create pressure unless systems are reviewed early.
The smart move now is to:
Speak with your payroll provider
Confirm your clearing house can handle more frequent payments
Adjust cashflow forecasts
Test your systems before July 2026
For growing businesses, this is also a good opportunity to review workforce structure, contractor arrangements, and overall payroll efficiency.
Legislation changes like this are rarely just “admin updates.” They are reminders to tighten systems and plan ahead. Superannuation reform is designed to strengthen the retirement system - but for business owners, preparation is key. The businesses that plan early will feel very little disruption. The ones that wait until mid-2026 may feel the squeeze - act before it’s too late!
Download the free Superannuation Planning Checklist.
Prepare your business before 1 July 2026.