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SMC urges government to prioritise payday super bill
Australians are losing millions weekly in unpaid super, yet payday super laws have not made it onto Parliament’s agenda.
The delay in legislating payday super reforms has drawn criticism as new figures revealed more than one in four Victorian workers have been underpaid their super in 2022–23, costing them more than $1.4 billion in lost retirement savings.
The Super Members Council (SMC) has published analysis of ATO data showing nearly 850,000 workers in Victoria missed out on an average of $1,670 in superannuation payments last financial year. Over six years, the total loss has reached more than $7.2 billion for Victorian workers alone.
The Melbourne electorate recorded the highest levels of unpaid super in the state, with $250 million going unpaid, followed by Lalor and McNamara.
Nationally, Australians have lost $5.7 billion in unpaid super in 2022–23, equivalent to $110 million every week. The SMC warned this trend will continue unless Parliament passes payday super laws as a matter of urgency.
The reforms would require employers to pay super at the same time as wages from 1 July 2026. While the government has committed to the policy, it has not yet included the legislation on the program for the current parliamentary sitting fortnight, raising concerns about unnecessary delays.
Moreover, a recent Pyxis Polling and Insights survey for SMC found more than 70 per cent of Australians support payday super laws starting in July 2026. Fewer than one in 10 believe they should be delayed.
SMC CEO Misha Schubert said there is no excuse for postponing legislation.
“It’s disappointing the government isn’t making payday super legislation a priority in this first sitting fortnight when millions of everyday Australians are losing $110 million a week in retirement savings,” Schubert has said.
“The average worker in Victoria could be short-changed more than $30,000 from their final retirement nest egg if unpaid super isn’t fixed urgently.
“We urge all Parliamentarians to get on with passing payday super legislation in the first 100 days of this Parliament.”
In its submission to the Treasury, the SMC proposed several measures to support employers during the transition, including extending the payment processing deadline to seven business days, a phased approach to early ATO enforcement, and easier account validation to reduce errors.
With digital and single touch payroll systems now widely available, many employers already pay super more frequently than quarterly. In 2020–21, 56 per cent of small and medium-sized businesses had done so.
AUTHOR
Adrian Suljanovic
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