The findings come from Employment Hero’s "Inside the Future of Super: 2026 Report," which surveyed 500 Australian businesses and over 1,000 employees. The report highlights a widespread readiness crisis, with 80 per cent of Australian employees and 58 per cent of businesses unaware of the impending changes.

Businesses face daunting challenges

The report paints a concerning picture for businesses, with 70 per cent expressing worry about their ability to keep up with evolving requirements. A significant portion of employees, 36 per cent, also harbour doubts about their employer’s capacity to implement the necessary changes. These concerns are compounded by existing frustrations, as 84 per cent of businesses report issues with current super processes. The most common grievances include returned funds due to errors (63 per cent) and cumbersome manual processing steps (60 per cent).

Financially, the shift to Payday Super will require businesses to make substantial adjustments. Employment Hero’s financial modelling suggests an average need for $124,000 in additional working capital to manage the transition from quarterly to per-pay-cycle contributions. Alarmingly, 40 per cent of businesses indicated they might need to access credit or financing to meet these new requirements.

Small businesses are particularly vulnerable, facing a "perfect storm" of regulatory change and reduced support with the imminent closure of the ATO's Small Business Superannuation Clearing House on 1 July 2026.

Employee engagement remains low

Employee engagement with superannuation also remains troublingly low. Currently, only 18 per cent of workers check their superannuation each pay cycle, and less than half (41 per cent) have actively engaged with their super fund in the past year. This disengagement can have significant financial consequences. The report models that over a 40-year career, the difference between an engaged and disengaged employee can amount to approximately $156,000 in retirement savings.

The report also highlights a significant gender disparity in superannuation confidence. Women are more than twice as likely as men to lack confidence in making super decisions. Only six per cent of women consider themselves knowledgeable about super, compared to 15 per cent of men.

Despite these challenges, the introduction of Payday Super may encourage a positive shift in engagement. The research projects a 33 per cent increase in employees checking their super every payday once the reforms take effect, as more frequent and visible contributions prompt closer scrutiny.

A call for urgent action

Rob Dunn, General Manager of Superannuation and Benefits at Employment Hero, underscores the potential benefits of the reform while acknowledging the challenges businesses face. "Payday Super is one of the most positive reforms for working Australians in decades. More frequent contributions mean better visibility, fewer lost accounts, and ultimately, healthier retirement savings for millions of people," he said.

However, Dunn emphasises the urgent need for support and guidance as the deadline approaches. "The challenge is that with just over four months to go, nearly six in 10 employers still don't know about this change. It’s not a reflection of unwillingness - businesses need clearer guidance and smarter tools to get ready in time. The right payroll and payments solution will not only help businesses stay compliant, but also better position them to attract and retain talent in a market where employees increasingly expect visibility over their entitlements."

As the countdown to 1 July 2026 continues, the findings from Employment Hero’s report highlight the pressing need for both businesses and employees to increase their awareness and preparedness for Payday Super. With significant financial and operational implications, the reform represents a critical juncture for Australia’s superannuation landscape.