Why super will soon be paid at the same time as wages | The Business | ABC NEWS

Payday superannuation changes take effect from July 1, 2026, when employers must start to pay super contributions at the same time as staff wages. Analysis from the Super Members Council shows a typical worker could be $9,400 better off in retirement if their super is paid with their wages because the returns accrue and compound sooner. Super Members Council use age cohort median wages for workers in employment for 40 years and include breaks. The tax office is also cracking down on unpaid or late super contributions. The deputy commissioner of the ATO's payday super program, Emma Rosenzweig, says every year, about $6.2 billion goes unpaid in superannuation. Tax expert Rick Kimberley, from accounting firm RSM Australia, said the reforms would reduce the amount of unpaid super each year, but there would still be challenges. While most businesses support the introduction of payday super, 87 per cent say it will put pressure on cash flow, with more than half citing customer payments as the biggest challenge, according to a survey from accounting platform Xero. The general manager at software company MYOB, Kim Owen-Jones, says about 60 per cent of small businesses pay their staff weekly, adding further pressure to cash flow. She said about 15 per cent of small businesses — about 400,000 companies across the country — were still unaware of the change taking place from July 1. #ABCBusiness Subscribe: http://ab.co/1svxLVE Read more here: https://www.abc.net.au/news/2026-06-22/payday-super-changes-sees-mixed-response-from-businesses/106649250 Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia