Young Australians and tradespeople have faced the greatest risk of super underpayment, with reforms promising to boost their retirement savings.
Young workers and tradespeople have been among the Australians most at risk of having their superannuation underpaid or not paid at all, according to new research from the Association of Superannuation Funds of Australia (ASFA).
The findings showed tradespeople and labourers have been more than twice as likely to have unpaid or underpaid super than white-collar professionals.
Workers aged 20–24 have been around 70 per cent more likely to miss out on their super entitlements than those aged 60–64.
ASFA said 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.
So far, payday super has enjoyed significant public support, with an overwhelming majority of Australians backing the change.
In a recent ASFA-commissioned survey, 80 per cent of respondents agreed that super should be paid at the same time as wages, with support consistent across age groups and slightly stronger among blue-collar workers.
ASFA modelling showed unpaid or underpaid super can significantly reduce a worker’s long-term financial security. For example, 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,” Delahunty added.
Currently, super is only required to be paid quarterly, making it difficult for workers to check whether their employer has met their obligations, with underpayment often not being discovered until it is too late, when the employer is insolvent, unreachable, or non-compliant.
Under the payday super reform, workers would be allowed to match payslips with super fund statements every week or fortnight, helping them detect issues early.
It would also benefit the 90 per cent of Australian employees who would see their super paid more frequently, with earlier investment generating greater compounding returns and higher retirement balances.
“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,” Delahunty said.
“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.”
ASFA, whose member funds manage 90 per cent of the country’s superannuation savings, has long advocated payday super. The reform was included in the 2023–24 federal budget with a proposed start date of 1 July 2026, but legislation has yet to be passed.
While some in the financial services sector have called for further delay, the superannuation industry warned that inaction will cost workers dearly.
Even a two-year delay would leave thousands of Australians significantly worse off at retirement than if payday super began next financial year, according to ASFA.
“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,” Delahunty concluded.
“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, common-sense reform that will greatly benefit ordinary Australians.
“Let’s just get it done.”
