Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Dr Daniel Mulino MP)General outline and financial impact
Payday Superannuation
Outline
Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 (the Bills) amend the SGC Act and the SGA Act to reform the SG framework. The reforms will create a strong incentive for employers to make superannuation contributions for their employees at the same time as they pay the employee's qualifying earnings. The amendments address the issue of unpaid superannuation and help to secure dignified retirement outcomes for working Australians.
Date of effect
The Bills commence on 1 July 2026.
The Bills apply to SG contributions in respect of QE days on or after 1 July 2026.
Proposal announced
The Bills fully implement the 'Securing Australians' Superannuation Package – increasing the frequency of the Superannuation Guarantee and investing in SG compliance' from the Budget papers measure in the 2023-2024 Budget.
Financial impact
The Bills are estimated to increase revenue by $589.0 million over the three years from 2026-27 to 2028-29.
All figures in this table represent amounts in $m.
| 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 |
| - | - | 1,405.0 | -929.0 | 113.0 |
Impact Analysis
The Impact Analysis relating to the amendments in the Bills has been included in Attachment 1
Superannuation
The Bills are compatible with the objectives of superannuation to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way. See Statement of Compatibility with the Objectives of Superannuation – Chapter 2
Human rights implications
The Bills raise human rights issues. See Statement of Compatibility with Human Rights — Chapter 3.
Compliance cost impact
The changes are expected to result in some transitional and some ongoing compliance costs for employers, particularly those employers that do not currently make SG contributions at the same time as they pay qualifying earnings. The compliance cost impact includes the need for digital service providers to update payroll and other business software, with this cost likely passed on to employers that use these services. Superannuation funds will also need to ensure their systems will be capable of handling an increase in contribution volume.
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