Let’s get this done: it’s time to help 3.3 million Aussies and swiftly pass payday super laws

With payday super laws set for debate in Parliament this week, the Super Members Council urges all Parliamentarians to pass them swiftly to tackle unpaid super – which costs Australian workers $5.7 billion a year.

Payday super laws were first promised two and a half years ago. Parliament must pass the laws promptly to meet the 1 July 2026 start date – any delay would cost workers a staggering $110 million a week in unpaid retirement savings.

SMC has championed payday super laws as a key reform to help stamp out unpaid super, coupled with more proactive recovery of unpaid super by the ATO. The Council’s landmark 2024 report comprehensively highlighted the scale of the unpaid super challenge.

The Council’s modelling shows 3.3 million Australians missed out on $5.7 billion in super in 2022–23, losing an average $1,730 each a year. Those losses can make people up to $30,000 poorer at retirement.

Payday super is a simple fix, requiring all employers to pay super at the same time as wages instead of quarterly.

This commonsense reform will ensure workers – who typically assume their super has been paid with wages – are paid the super they have earned, and make it much easier and faster to detect and fix underpayments.

The laws will also make it much easier for employers to stay on top of their cashflow and worker entitlements, and level the playing field for all businesses who are doing the right thing.  

With many employers already paying super more often than quarterly, payday super is urgent, practical and long overdue.

Following the 1 July 2026 start date, a 12-month transition period, administered by the ATO, will give confidence to businesses genuinely trying to do the right thing as they adjust to payday super.

Super Members Council CEO Misha Schubert says every week of delay on payday super costs Australian workers $110 million in lost retirement savings.

“This is a once-in-a-generation moment for every member of Parliament to ensure that every dollar which Australians have earned is paid to them on time and in full,” Ms Schubert said.

“We also need to see action to protect Australians from losing money to duplicate accounts with multiple fees by proceeding with proposed safeguards on super fund advertising during employee onboarding to protect consumers.”

The Government has not included in the legislation previously proposed consumer protections on super fund advertising on employee onboarding platforms.

These protections must also be in place by 1 July 2026 to strengthen member protection and prevent multiple accounts with duplicate fees.

In its submission to the payday super legislation exposure draft, SMC recommended that:

• During employee onboarding, the employee’s existing super fund and employers’ default fund should be shown more clearly and prominently than other advertised super funds on employee onboarding platforms, and;
• If the onboarding system includes ads for super funds, it must also include a clear link to the ATO’s YourSuper Comparison Tool. This helps employees make informed decisions about their super fund.