From July 1, 2026, employers will need to pay super at the same time as wages and salary.
The changes will leave the average 25-year-old earner about $6000, or 1.5 per cent, better off in retirement because more frequent payments leave more time for compounding interest.
Treasurer Jim Chalmers said the simple change was common sense.
"It will strengthen the system and will boost retirement incomes," he told ABC radio.
"The main reason for that is it will make it less likely that people will miss out on the super that they've earned and that they're entitled to."
Dr Chalmers said the lead time would give businesses a long enough grace period to adapt to the changes.
"We have deliberately given employers and super funds and others a long run-up until 2026 so that they can prepare for this change," he said.
The Australia Tax Office estimates there was $3.4 billion of unpaid super in 2019/20.
The ATO's resources will be boosted in a bid to crack down on compliance. It will also have a new target for recovery payments.
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