#wageunderpayment

Australian employers face a shifting payroll and compliance landscape in 2025–2026. New reforms around superannuation contributions, stricter wage‑underpayment laws, and evolving payroll tax/regulation requirements mean businesses must stay alert. For companies relying on staffing, outsourcing, or managing complex payrolls, understanding these changes isn’t optional it’s critical.

As a staffing and payroll agency, we monitor these developments closely so we can guide clients and ensure their payroll and compliance framework remains robust and future‑proof.

What’s Changing Key Reforms for 2026 Payday Super Superannuation Paid on Payday

✅From 1 July 2026, under the new Payday Superannuation Law, employers must pay superannuation guarantee (SG) contributions at the same time they pay salary or wages not quarterly anymore.

✅Super contributions must be received by the employee’s super fund within seven business days after payday, in most cases.

✅The legislation also re‑works the SG Charge (SGC), tightening penalties and removing the late‑payment offset benefit after the new law takes effect.

✅These changes aim to reduce unpaid or delayed super contributions and improve transparency, ensuring workers see their entitlements sooner.

What this means for employers: Payroll systems, cash‑flow planning, and pay‑cycle schedules must be reviewed and updated well before mid‑2026. Failing to comply can lead to additional charges under the reformed SG Charge rules.

Criminalisation of Wage Underpayments

✅ Since 1 January 2025, deliberately underpaying wages, super entitlements or other mandated benefits can be a criminal offence under Australian law.

✅ Penalties are significant: companies (except small business employers) may face large fines; individuals (directors/ responsible persons) may face fines or imprisonment in severe cases.

✅ Even civil penalties have increased for underpayment breaches, heightening the need for accurate and well‑documented payroll practices.

Implication: Employers must ensure payroll compliance not only technically but also ethically and legally. Outsourcing payroll to a compliance‑focused agency becomes increasingly attractive.

Why These Reforms Raise Demand for Outsourced Payroll & Compliance Services

Given the increased complexity and regulatory pressure, many businesses especially small to mid‑sized firms or companies managing multiple contracts/entities may find it difficult to maintain internal payroll compliance.

Outsourced payroll and compliance providers offer:

✅ Systems already configured to meet the requirements of Payday Super (timely super contributions per pay cycle).

✅ Up‑to‑date regulatory knowledge to avoid wage‑underpayment risks and legal exposure.

✅ Audit-friendly record‑keeping and documentation for transparency and compliance checks.

✅ Reduced administrative burden for companies, allowing them to focus on growth rather than compliance headaches.

For employers operating across states or using contingent workforce/staffing solutions, this outsourced model can dramatically lower compliance risk while ensuring workforce flexibility.

How to Prepare Now Checklist for Employers

✅ If your business runs payroll or uses staffing/outsourcing services, here are immediate steps to take ahead of 1 July 2026:

✅ Review Payroll System and Process: Ensure your payroll software supports per‑pay‑cycle super contributions and timely fund transfers.

✅ Update Cash‑flow Planning: More frequent super payments mean changed cash‑flow patterns plan for those.

✅ Audit Historical Payroll and Super Contributions: Check if there were past delays or underpayments to avoid risks under the new rules.

✅ Reassess Contracts with Staffing or Payroll Vendors: Make sure external providers understand and commit to compliance under Payday Super and wage‑underpayment laws.

✅ Train HR/Payroll Teams: Ensure that responsible staff understand the legal obligations, new deadlines, and reporting requirements.

Why Partnering with a Payroll & Compliance Agency Makes Sense in 2026

Given these shifts, working with an experienced payroll and compliance agency can offer several advantages:

✅ They remain updated with legislation and compliance changes reducing your legal and financial risk.

✅ They handle the technical work: fund transfers, super contributions, reporting, and record‑keeping.

✅ For staffing agencies and companies using contract or contingent labour they manage compliance across different employment types and pay cycles.

✅ They provide scalability: as your business grows, payroll and compliance remain standardised, compliant, and stress‑free.

Australia’s upcoming reforms especially Payday Super and stricter wage‑underpayment laws signal a major shift in how employers must handle payroll and superannuation.

Businesses that prepare now, adapt their processes, or partner with a reliable payroll/compliance provider will be best positioned to avoid risks and focus on growth.