Millions of Australians’ retirement nest eggs are about to be boosted by payday super reforms, but experts warn the change could have huge consequences for businesses.Starting from July 1, 2026, employers will be asked to pay employee superannuation at the same time as workers receive their salary or wage.Under the current model, while superannuation appears on a pay slip, it only needs to be paid once every 90 days.Aimed at helping Aussie workers regain an estimated $5.7bn in lost or unpaid super a year, the legislation will create cash flow issues for businesses, employment groups warnEmployment Hero research found that businesses would require an average of $124,000 in additional working capital to meet this upcoming obligation.The Australian Taxation Office warns it can penalise businesses who miss the seven-day payment deadline 25 or 50 per cent of the unpaid super guarantee based on their prior compliance history.Employment Hero general manager for payments, superannuation and benefits Rob Dunn told NewsWire that businesses would have to change billing and payment cycles to meet their super obligations. “The changes will have a material impact for every business but particularly for SME businesses where the operational and cash flow impacts will be quite significant,” he said.“We need to always be very aware it is a great benefit for workers, as all Aussie workers absolutely deserve to have their superannuation contributed as soon as possible, but it is the transition for businesses we need to consider.”Meanwhile, Association of Superannuation Funds of Australia chief executive Mary Delahunty previously called the legislation the biggest change in 20 years.“Payday super is the most significant change to how employers pay super since 2005 when workers first gained the right to choose their own fund, putting them in full control of where their retirement savings were invested,” she said.Mr Dunn agreed, saying it is a huge win and well deserved for Australian workers, but added that businesses may need to reassess their own payables and investment cycles to free up cash flow.At the same time, he warned that two in five businesses that Employment Hero surveyed said they were simply unaware of the changes. Mr Dunn said payday super was another cost small and medium-sized businesses would have to bear during a difficult period.“We have cost-of-living pressures, we have an over 4 per cent increase to the base award wage, we have changes to surcharges …. so there is a real confluence of factors that are going to squeeze the cash flow and operations of businesses,” he said.“When you mount up inflation and the challenges to pass on price rises to customers, it is really going to be a challenging time for small and medium-sized businesses.”What does this mean for workers?While it is a major hurdle for businesses, payday super has been labelled a big win for workers.Australians often assume they have been paid super, but that is not always the case.The legislation also allows for a worker to benefit from compounding earlier. For a worker in their 30s, simply moving contributions from quarterly to fortnightly can add thousands of extra dollars at retirement – the same dollars, compounding for longer. Australian Super says Australian workers lost $24.4bn in unpaid superannuation over the last five years.It also estimates one in four Australians have missed out on some form of superannuation payment. By simply changing the frequency of pay, Colonial First State estimates a 25-year-old will be about $4308 better off in retirement, while a 35-year-old will have an additional $3389 in their nest egg.Colonial First State head of technical services Craig Day labelled payday super a win for workers, as it could help grow superannuation savings without members having to make additional contributions. “At a time when the cost of living is a major concern in Australia, and many don’t feel prepared for retirement, the potential for additional super at retirement may come as a welcome surprise,” Mr Day said.He said over time this would add up for younger Australians especially.“If you receive super more frequently, your super savings have more time to compound and grow, meaning the payday super reforms could help you boost your retirement savings over time,” he said.“The payday super reforms also support more visibility. Many Australians will soon see super contributions landing in their accounts soon after they are paid, making them easier to track.” Ms Delahunty called it ”great policy” for every part of the employment economy. “This is a real milestone moment for the retirement savings of 18 million Australians. Workers will accumulate more simply by being paid super when they earn it, and unpaid super will be harder to hide,” she said. “Most employers are ready, and many have already shifted to paying super on payday. But the window to meet the new obligations is closing fast.”