Treasurer Jim Chalmers on Thursday introduced the Payday Superannuation Bill into parliament, which would require employers beginning July 1 to make superannuation contributions within seven business days of payday.
Dr Chalmers said it would strengthen Australia's superannuation system and combat wage theft.
Unpaid super totalled almost $5.2 billion in 2024/25, he said, and more frequent payments should help with detecting unpaid super contributions more quickly.
"Our government is ensuring more Australians earn more, keep more of what they earn and retire with more too," the treasurer said.
The government has been consulting on the rules since announcing the policy in the 2023 federal budget, feedback from which Dr Chalmers says has led to changes.
The reform is welcomed by peak body the Association of Superannuation Funds of Australia, which says polls indicate 80 per cent of Australians support it.
The "simple but powerful" reform would also greatly increase the administrative load on the super industry, the association's CEO Mary Delahunty warns.
The Australian Council of Trade Unions calls on parliament to urgently pass the bill, saying research indicates super is stolen from almost one-in-three workers aged in their 20s and more than one-quarter aged in their 30s.
"Paying super on payday is a commonsense way to make it harder for dodgy employers to steal workers' super," said ACTU assistant secretary Joseph Mitchell.
CPA Australia said the government was right to change the current "outdated and troublesome" rules, but is concerned it was being implemented too quickly.
Some firms will face significant cashflow challenges as they adjust and many small would struggle to cope with what may become another compliance headache, the accountancy body's superannuation lead Richard Webb said.
While the Australian Tax Office indicates it would take a hands-off approach in the policy's first year for businesses that make an effort to comply, Mr Webb cautioned the quick rollout still could lead to a "period of chaos".
Payroll platform Employment Hero said a survey of its customers found one-third of small and medium-sized businesses would need to build cash reserves to stay solvent under the changes.
