Payday Super laws should help us better engage with our superannuation and the insurance attached to it.
What is happening?
From 1 July 2026, Australia’s new Payday Super laws will require employers to pay superannuation contributions at the same time as wages. Until now, superannuation is to be paid quarterly. The reform is designed to reduce unpaid superannuation. This will get employees their entitlements sooner and make the system work properly.
While much of the commentary in the media has focused on the financial impact on employers, there is another important aspect that deserves attention: the insurance attached to your superannuation.
What does this mean for your insurance?
Most Australians hold insurance through their super fund, usually death insurance and total and permanent disability (TPD) and sometimes income protection insurance.
Why it’s important
These policies can provide critical financial support if a worker becomes injured or ill and is unable to work. However, many employees are unaware of the level of cover they have or the eligibility rules that apply when making a claim. With contributions flowing into super more frequently under Payday Super, people should have a clearer and more up-to-date picture of their super balances and insurance premiums. This presents an opportunity to review your superannuation insurance and understand how your TPD and income protection insurance operate, including waiting periods, benefit limits and definitions of disability.
More than retirement savings
Payday Super is ultimately a positive reform. But it reinforces the need for both employers and employees to treat superannuation as more than just retirement savings. It is also a vital source of insurance protection that can make a profound difference when life does not go to plan.
Help
If you need advice involving TPD or income protection claims, Leonard & Welch can help.
There is, of course, more to this than can be covered here. As the usual legal disclaimer goes, this information is general in nature because legal advice always depends on your circumstances.
You can call us at (03) 9969 7077 or via email at info@leonardwelch.au.
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