Deanne Stewart
Aware Super welcomes the start of the Payday Super regime on Wednesday 1 July, one of the most meaningful improvements to Australia’s retirement savings system in a generation.
From Wednesday, employers are required to pay superannuation at the same time as salary and wages, with contributions required to reach an employee’s super fund within seven business days of each payday in most cases. The reform ends a long-standing arrangement under which super could be paid quarterly.
Aware Super CEO Deanne Stewart said: “This is a genuine win for Australian workers. Super is as important to people’s financial wellbeing as the wages in their pocket and should be treated that way. Payday Super fixes an outdated system and Australian workers will ultimately be better off for it.
“This change will help ensure workers receive the right amount of super and can track their payments more easily. It also means contributions will be invested sooner, building retirement savings faster.”
Ms Stewart said the reform would have an especially significant impact on women, many of whom have historically lost super through the gaps created by quarterly payment cycles. “Many of Aware Super’s members are women working in health care, education and community services — often in part-time or casual roles. Payday Super addresses a structural inequity that has cost these workers real money over their working lives. That matters enormously to us,” she said.
The fund has worked closely with employers in the lead-up to 1 July, providing guidance and practical support to help them understand and meet their obligations.
Ms Stewart said Aware Super would continue to support employers in the early stages of implementation. “We know that for many employers, especially those who are not large payroll operators, this is a significant change. We’ve been working closely with employer groups in the lead up to 1 July and we’ll continue to support them as the new system beds in. Our goal is to help make this transition as straightforward as possible.”
The fund’s readiness for Payday Super has been underpinned by its Catalyst Project, completed in 2023, which brought member administration in-house and digitised over 90 per cent of Aware Super’s processes — creating a modern, efficient administration platform purpose-built for a more dynamic contribution environment.