Australian businesses and workers deserve the certainty of bipartisan support for landmark payday super reform, a key tool to tackle Australia's $5 billion a year unpaid super problem.
The Australian Government has committed to modernising super payments by July 2026, shifting the law from super only being paid at least once a quarter to being in-sync with the payment of wages.
The reform has been announced for over 18 months, and stakeholder consultations have informed the design detail. While progress has been made, the reform is yet to secure formal bipartisan support.
This simple change will mean almost 9 million Australians will get their super paid sooner. That will mean $7,700 more at retirement for the average hardworking Australian – because the more frequently paid super contributions accrue and compound sooner.
Payday super will strongly tackle Australia's $5 billion in a year unpaid super problem – helping to ensure workers are paid on time and in full and businesses operate on a level playing field without being undercut by employers who do not pay their super.
It also creates smoother cashflow management for small business. Quarterly payments creates large super liabilities and an administrative burden from time-consuming reconciliations, which can be prone to miscalculations leading to incorrect payments.
This reform has widespread public support. A November 2024 national survey of 3067 Australians found 74 per cent supported payday super. Only three per cent were opposed (the rest were neutral).
Ahead of the election, the Super Members Council is calling on all political parties to back this much-needed reform as a formal pre-election commitment.
"Paying super on payday will modernise the super system to stem underpayments for workers. This urgently needed reform will be fairer for both workers and employers," said Super Members Council CEO Misha Schubert.
"Australians want payday super to be law. With an election due shortly, both workers and employers deserve certainty that payday super is going ahead on time, with full support from both major parties."
"Millions of Australians are paying the price every single day their super goes unpaid – they cannot afford any delay to the introduction of payday super."
New SMC analysis released in a report on unpaid super in Australia found:
- In one year, 2.8 million Australians missed out on $5.1 billion in legal super entitlements (2021-22)
- Over 9 years, Australians have missed out on $41.6 billion in unpaid super,
- The average affected worker missed out on $1,800 in super in a year.
- Women, people in insecure jobs, and young workers are badly impacted by unpaid super at retirement.
- Workers in small and micro businesses are more likely to be underpaid super.
Unpaid super is a breach of the law which denies workers the right to save for retirement and can cost the average worker more than $30,000 from their final retirement nest egg.
With digital payroll systems almost ubiquitous, many employers pay super more frequently than quarterly. As of 2020-21, 56% of small and medium businesses and one-third of micro business already make super payments more frequently than quarterly.
Table 1: 2021-22: Federal Electorates with the Worst Unpaid Super Records by amount of people underpaid
Electorate / State |
People underpaid |
Percentage of people underpaid |
Average underpayment |
Total unpaid super 2021-22 ($M) |
Lalor / Vic |
29,000 |
29% |
1,520 |
$44.1 |
Mitchell / NSW |
26,550 |
30% |
1,630 |
$43.3 |
Greenway / NSW |
26,500 |
28% |
1,640 |
$43.5 |
Sydney / NSW |
26,400 |
25% |
1,990 |
$52.6 |
Forde / QLD |
25,500 |
28% |
1,750 |
$44.6 |
Parramatta / NSW |
25,100 |
28% |
1,800 |
$45.1 |
McEwen / Vic |
25,050 |
31% |
1,780 |
$44.7 |
Holt / Vic |
24,950 |
29% |
1,490 |
$37.3 |
Melbourne / Vic |
24,850 |
25% |
1,820 |
$45.2 |
Reid / NSW |
24,300 |
26% |
1,780 |
$43.3 |
Kingsford Smith / NSW |
24,250 |
27% |
1,830 |
$44.3 |
Bennelong / NSW |
24,050 |
27% |
1,880 |
$45.2 |
Macarthur / NSW |
23,150 |
27% |
1,680 |
$38.9 |
Lindsay / NSW |
22,950 |
28% |
1,920 |
$44.0 |
Gellibrand / Vic |
22,850 |
28% |
1,830 |
$41.7 |
Hotham / Vic |
22,800 |
27% |
1,570 |
$35.7 |
Brisbane / Qld |
22,750 |
24% |
1,950 |
$44.5 |
Durack / WA |
22,700 |
25% |
2,010 |
$45.6 |
Gorton / Vic |
22,650 |
29% |
1,640 |
$37.1 |
Chifley / NSW |
22,500 |
28% |
1,920 |
$43.3 |
Hume / NSW |
22,450 |
29% |
1,670 |
$37.4 |
Fremantle / WA |
22,400 |
27% |
1,920 |
$43.1 |
Cowan / WA |
22,300 |
26% |
1,940 |
$43.3 |
O'Connor / WA |
22,300 |
29% |
1,840 |
$41.0 |
Werriwa / NSW |
22,150 |
28% |
1,900 |
$42.1 |
Aus total |
2.8 million |
26% |
$1,810 |
$5.1 billion |
Source: Super Members Council analysis of ATO 2 per cent sample file, 2021-22, and ABS data.
About us:
We are a strong voice advocating for more than 11 million Australians who have over $1.5 trillion in retirement savings in profit-to-member superannuation funds. We protect and advance the interests of super fund members throughout their lives, advocating on their behalf to ensure superannuation policy is stable, effective, and equitable. We produce rigorous data and analysis to inform public policy discussions to strengthen retirement for millions of everyday Australians.
