ASFA, the voice of super, welcomes the Government’s announcement that compulsory payday super will be introduced from 1 July 2026.
This crucial reform, long advocated by ASFA, requires employers to pay superannuation at the same time as wages. It will ensure millions of Australians receive the superannuation they are owed and benefit from having their super invested earlier and more frequently.
“Payday super is a game-changer,” said ASFA CEO Mary Delahunty.
“This reform means workers will see their super build in real-time, alongside their wages. It will mean less lost super and better investment 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.
Less underpayment and non-payment of super
According to ATO data, there were more than 500,000 cases of underpayment and over 200,000 cases of non-payment of super in the 2022 financial year, amounting to over $3 billion in lost retirement savings. This ‘superannuation guarantee gap’ disproportionately affects lower-income earners, women, and casual workers — groups that payday super is specifically designed to assist.
“Most businesses do the right thing and pay super entitlements, but there are still far too many who are cheating their employees and the system, which hurts those workers in retirement.
“This reform directly addresses the issue of delayed or unpaid super, which disproportionately affects lower-income earners, casual workers, and women.
“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,” Ms Delahunty said.
Less lost and unclaimed super
Recent data from the Australian Taxation Office (ATO) shows there is $17.8 billion in lost and unclaimed super in the system. More frequent super payments will offer workers better visibility over their super, helping to reduce the amount of unclaimed funds and ultimately boost Australians’ retirement savings.
Better investment outcomes
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.
“Quite simply, the earlier super is paid, the longer the money remains invested. In real terms, a 25-year-old median income earner receiving quarterly super payments will be $6,000 better off in retirement just through receiving fortnightly payments,” Ms Delahunty remarked.
ASFA is committed to working to make sure payday super is not only implemented smoothly 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,” Ms Delahunty concluded.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
