Millions of Australian workers have been underpaid superannuation to the tune of $24.4 billion over five years, with new analysis indicating the issue has been persistent and widespread across the system.
Figures from the Super Members Council (SMC) show one in four workers were affected each year between 2018 and 2023, pointing to structural gaps in how contributions are tracked and enforced.
Geographic disparities have also emerged, with New South Wales accounting for $8.1 billion in total underpayments across the period, while workers in the Northern Territory faced the highest average annual shortfall at about $2,140 per person.
Attention is now shifting to whether incoming payday super reforms will materially reduce the problem.
From 1 July 2026, employers will be required to pay super alongside wages rather than on a quarterly basis, a change designed to make missing contributions more visible and easier to rectify.
The Council has consistently argued that timing is central to the issue, with delayed payments allowing underpayments to accumulate unnoticed. Its previous research estimated unpaid super costs workers nearly $6 billion each year, with the impact magnified over time through lost investment returns.
That compounding effect remains a key concern, with modelling suggesting a $1,730 shortfall in a single year could translate into more than $30,000 less at retirement.
Women, younger employees and those on lower incomes are disproportionately affected and facing weaker retirement outcomes, while half of workers earning under $25,000 annually are estimated to have missed super entitlements.
Policymakers and industry bodies have also pointed to system improvements already underway. Digital payroll infrastructure and Single Touch Payroll reporting have increased payment frequency, with 56 per cent of small and medium businesses paying super more often than quarterly as of 2020–21.
The Australian Taxation Office is expected to prioritise a “pragmatic” and “supportive” approach in the first year of the new regime, giving employers time to adjust before enforcement tightens.
“Unpaid super is a silent pay cut that’s cost Australian workers $24.4 billion in just the last five years alone. This is money Australians have earned but never been paid – and it’s leaving millions significantly poorer at retirement,” says Super Members Council CEO Misha Schubert.
“Unpaid super hits hardest where it hurts most – for women, younger workers and people on low incomes. For someone shortchanged by just $1,730 in a year, the loss can snowball into more than $30,000 by retirement.
“Payday super is a game-changer because it will help to stop unpaid super before it happens. This long-overdue shift to pay super with wages will make any underpayments visible, easier to fix, and far harder to hide – while also levelling the playing field for employers who already do the right thing by their staff.”
