Default Superannuation Funds in Modern Awards
The Fair Work Commission has recently updated the default superannuation fund clauses across a number of Modern Awards, correcting and amending fund names to ensure they accurately reflect current fund details. As referenced in our recent LinkedIn post, one example is the Architects Award, where clause 16.4 was varied effective 23 January 2026 to update the default funds listed.
While these award variations may appear administrative, they serve as an important reminder of broader changes to superannuation compliance that employers must prepare for in 2026.
What Is Changing in Modern Awards
Across several Modern Awards, the Commission has:
- Corrected fund names
- Removed outdated fund references
- Updated default super fund clauses
These changes do not alter an employee’s right to choose their own superannuation fund but do affect which default fund may apply where no choice has been made.
What Employers Need to Remember
Award-nominated default funds only apply where:
- The employee does not nominate their own superannuation fund; and
- The employee does not have a “stapled” fund identified through the ATO.
Under current rules, employers must first request stapled fund details from the ATO for new employees who have not made a fund choice. Only where no stapled fund exists can contributions be directed to an award-listed default fund.
Failing to follow this process can create compliance risk under both the Superannuation Guarantee framework and applicable Modern Awards.
Payday Super: A Major Timing Reform from 1 July 2026
In addition to the award variations, a significant superannuation reform known as Payday Super will take effect from 1 July 2026. Under this new regime, employers must pay superannuation guarantee (SG) contributions at the same time they pay employees’ wages, rather than on a quarterly basis as under the current system.
Key Elements of Payday Super
- Super contributions must be paid at the time of each payday, not quarterly.
- Contributions must reach the employee’s nominated fund within seven business days of payday.
- Some exceptions apply, such as the first super contribution for a new employee, which may have up to 20 business days to be paid.
- The ATO is the primary agency responsible for implementing and enforcing these changes.
This shift aims to improve the timeliness and consistency of super contributions, reduce instances of unpaid super, and give employees better visibility and access to their retirement savings as they are earned.
What Employers Should Do Now
With both award default fund updates and the introduction of Payday Super ahead, employers should take proactive steps to ensure compliance:
- Review payroll systems to ensure they can process super contributions on every pay cycle.
- Update onboarding procedures to include ATO stapled fund checks and correct default fund selections.
- Assess cash flow planning, as super will need to be paid alongside wages from each payday.
- Train payroll and HR teams on the new obligations and timing requirements.
Preparing well in advance will help avoid compliance issues, potential penalties, and operational disruptions once the new rules commence.
If you would like support reviewing your payroll, onboarding or award compliance processes in light of these superannuation changes, reach out to Harrisons — our HR team is here to help you stay compliant and prepared.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
