Australians have thrown their support behind payday super reforms just one month before they come into effect, as new research suggests more businesses are already shifting to more frequent superannuation payments.
An Ideally survey of more than 1,000 Australians, commissioned by the Super Members Council (SMC), found only 2 per cent of respondents opposed payday super, while 62 per cent said the reform should commence on 1 July as planned.
The changes will require employers to pay superannuation contributions at the same time as wages from 1 July 2026, replacing the current quarterly payment system. Contributions must reach an employee’s super fund within seven business days of payday.
SMC chief executive Misha Schubert said the findings reflected widespread public support for reforms designed to tackle unpaid superannuation.
“Australians right across the country overwhelmingly back payday super, because they want more visibility and confidence that their super is being paid properly – on time, every time, in full,” Schubert said.
The Australian Taxation Office (ATO) has indicated it will take a graduated approach to enforcement during the first 12 months of the new regime, focusing compliance efforts on areas of highest risk while businesses adjust to the changes.
The industry body said payday super would be a significant step in addressing unpaid superannuation, which it described as a persistent problem affecting millions of workers.
Recent analysis by the council found Australian workers were underpaid a total of $24.4 billion in superannuation over the five years to 2023.
Its modelling showed the average affected worker missed out on $1,730 in super during 2022–23 and could be more than $30,000 worse off in retirement because of lost compound investment returns.
More than 70 per cent of survey respondents agreed the reforms would help them keep track of whether their employer was paying super correctly, while more than half said they expected to check their super balances more regularly once the changes take effect.
The council noted unpaid superannuation disproportionately affects vulnerable groups, including women, younger workers and lower-income earners. According to the organisation, women retire with around a quarter less super than men, while one in two workers earning less than $25,000 annually have unpaid super entitlements.
At the same time, businesses appear to be preparing for the transition. With digital payroll and Single Touch Payroll reporting systems now widely available, around 40 per cent of employers already pay super more frequently than the current quarterly requirement.
ATO data also showed that since payday super was announced, about 19,000 additional employers have moved to more frequent payment cycles, representing a 2.4 percentage point increase in the share of businesses doing so.
The council said the reforms would help employers better manage worker entitlements and cashflow while creating a more level playing field for businesses already meeting their obligations.
“Payday super will be a big change for some employers that will make a very big difference for the workers they employ,” Schubert said.
“For employers making this transition, we appreciate the scale of the task and that’s why we support the ATO’s graduated approach on enforcement in the first 12 months.”
“Unpaid super is a silent pay cut that costs Australian workers nearly $6 billion each year. This is money Australians have earned but never been paid – and it’s leaving millions much poorer at retirement.”
