ASFA, the voice of super, welcomes Federal Treasurer Jim Chalmers’ announcement today of a significant funding boost to implement Payday Super – the crucial reform, long advocated by ASFA, which is due to begin on 1 July 2026.
Speaking at today’s MYEFO press conference, Mr Chalmers announced the additional allocation of $404.1m over four years from 2024-05 to help implement the much-needed payday super measure that requires employers to pay their employees’ superannuation entitlements at the same time as their wages.
Mr Chalmers said the Government will also introduce legislation to “recalibrate penalties and charges, incentivising employers to promptly rectify missed payments, with more severe consequences for deliberate and repeated failures”.
ASFA CEO Mary Delahunty welcomed the announcement of the additional funding, saying: “Payday super is a game-changer.”
“This reform means workers will see their super build in real-time, alongside their wages. It will mean less lost super and better outcomes in preparation for retirement. We are sure that this change will encourage people to engage more regularly with their retirement savings,” Ms Delahunty said.
ATO data reveals there were more than 500,000 cases of underpayment and over 200,000 cases of non-payment of super in the 2021-22 financial year, amounting to over $5 billion in lost retirement savings. This ‘superannuation guarantee gap’ disproportionately affects lower-income earners, women, and casual workers — groups that payday super is designed to assist.
“It’s about fairness. Payday super makes it much more likely that Australians will receive the super contributions they’ve earned, paid on time, every time.”
ASFA says payday super will also have a tangible impact on retirement savings by ensuring workers don’t miss out on the benefits of compounding investment returns through more frequent contributions.
“In real terms, a 25-year-old median income earner currently receiving quarterly super payments will be $6,000 better off in retirement just through receiving fortnightly super contributions,” Ms Delahunty said.
ASFA is committed to working to make sure payday super is not only implemented in an orderly and controlled manner, but also delivers real benefits for Australians’ retirement outcomes.
“Our focus is on making sure that these changes translate into meaningful improvements for workers’ futures, providing the comfortable and secure retirement they’ve worked hard for and deserve,” Ms Delahunty concluded.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
