Young workers and tradespeople are among the Australians most at risk of having their superannuation underpaid or not paid at all, according to research published today by super’s peak body, the Association of Superannuation Funds of Australia (ASFA).
The research shows that tradespeople and labourers are more than twice as likely to have unpaid or underpaid super than white-collar professionals. Workers aged 20 to 24 are around 70% more likely to miss out on their super entitlements than those aged 60 to 64.
ASFA says these groups will benefit most from the government’s proposed Payday Super reforms, which will require employers to pay super at the same time as wages, rather than quarterly.
“We’re calling on the parliament to get Payday Super signed into law as soon as possible, and before the proposed start on 1 July 2026. Any delays will come at the cost of Australians’ retirement savings, with young people and blue-collar workers being hit hardest,” ASFA CEO Mary Delahunty said.
Payday Super enjoys significant public support, with an overwhelming majority of Australians backing the change. In a recent ASFA-commissioned survey, 80% of respondents agreed that super should be paid at the same time as wages.
Support for the reform was consistent across age groups and was slightly stronger among blue-collar workers.
Why Payday Super matters
Unpaid or underpaid super can significantly impact a worker’s long-term financial security. ASFA modelling shows that a 30-year-old worker on average wages who misses out on one year of contributions will retire with $25,000 less in their super.
“Superannuation is the kind of investment where small amounts, invested regularly, grow significantly over time. Missing out on just a few hundred dollars in your twenties can mean retiring tens of thousands of dollars worse off,” Ms Delahunty said.
Currently, super is only required to be paid quarterly, making it difficult for workers to track whether their employer has met their obligations. Often, by the time underpayment is discovered, it’s too late: the employer may be insolvent, unreachable, or non-compliant.
Payday Super would allow workers to check their payslips against super fund statements every week or fortnight, helping them catch issues and take action earlier.
Payday Super will also benefit the 90% of Australian employees who will see their super being paid more frequently. Earlier investment means greater compounding returns and higher balances at retirement.
“The longer super remains uninvested, the longer workers miss out on returns. In some cases, employers are earning interest on money that should already be in an employee’s super fund. Those returns should belong to the worker, not the business. For a 25-year-old on the average wage, even just receiving their super fortnightly instead of quarterly will mean they are $5,000 better off in retirement,” Ms Delahunty said.
Payday Super legislation
ASFA, whose member funds manage 90% of the country’s superannuation savings, has long advocated for Payday Super.
ASFA welcomed Payday Super’s inclusion in the 2023–24 Federal Budget, with a proposed start date of 1 July 2026. But the measure is not yet law.
While some organisations in the financial services sector have called for further delay, the superannuation industry warns that the cost of inaction is too high. Even a two-year delay would leave thousands of working Australians significantly worse off at retirement than if Payday Super began next financial year.
“Every year we delay means more Australians missing out on better retirement security. Hundreds of millions of dollars in retirement savings are potentially at stake, and Aussie workers simply can’t afford for this legislation to be kicked down the road.
“We’re calling on both sides of politics and the broader financial services industry to support legislating Payday Super so it can start next financial year. It’s an obvious, commonsense reform that will greatly benefit ordinary Australians. Let’s just get it done,” Ms Delahunty said.
ENDS
For further information, please contact:
Scott Roberts, ASFA Media Lead: 0437 295 087
ASFA media team mediaunit@superannation.asn.au
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.
