Millions of Australians are unknowingly losing thousands of dollars in retirement savings, with one in four workers missing out on their full superannuation entitlements. The issue, which cost workers $5.1 billion in 2021-22 alone, has prompted renewed calls for urgent payday super reforms—but political gridlock continues to delay action.
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Super Underpayments Costing Aussies $30,000 in Retirement
A new analysis by the Super Members Council revealed that 2.8 million workers were shortchanged on their legal super payments in a single year, with an average underpayment of $1,810 per person.
At a national level, the cumulative impact of unpaid super could strip the average worker of more than $30,000 from their retirement nest egg.
The worst-hit electorates include:
✅ Lalor (VIC): Nearly 30,000 workers underpaid
✅ Mitchell (NSW), Greenway (NSW), Sydney (NSW): Over 26,000 workers shortchanged
✅ Forde (QLD), Parramatta (NSW), McEwan (VIC): More than 25,000 workers affected
“Millions of Australians are paying the price every single day their super goes unpaid – they cannot afford any delay to the introduction of payday super.”
– Misha Schubert, CEO of Super Members Council
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What is Payday Super & How Will It Help?
Currently, employers are only legally required to pay superannuation quarterly, which means workers miss out on frequent compounding growth.
Under payday super reforms, contributions would be paid at the same time as wages, ensuring:
🔹 Faster super accumulation – helping funds grow more efficiently
🔹 More financial security – reducing the risk of employer non-compliance
🔹 An extra $7,700 at retirement – on average, for every worker
Despite these benefits, payday super has yet to secure bipartisan support, leaving millions vulnerable to continued underpayment.
Political Roadblocks: Will Payday Super Become Law?
The Labor government introduced payday super reforms over 18 months ago, with a proposed start date of July 1, 2026. However, the Coalition has yet to back the plan, citing concerns about potential impacts on small businesses.
Opposition financial services spokesperson Luke Howarth stated the Coalition would review the legislation once finalized, considering how the added compliance costs might affect employers.
Meanwhile, the Council of Small Businesses has voiced concerns over the financial and administrative burden the reform could place on:
✅ Employers – needing to update payroll systems
✅ Payroll software providers – adjusting to new rules
✅ Super funds & ATO – managing increased transactions
Many Businesses Already Paying Super More Frequently
Despite pushback from some sectors, data suggests many businesses are already ahead of the curve:
📌 56% of small and medium-sized businesses pay super more often than quarterly
📌 One-third of micro-businesses also pay more frequently
With millions of Australians losing thousands of dollars in super, the pressure is mounting on lawmakers to fast-track payday super reforms and protect workers’ retirement savings.
🚨 Do you think super should be paid on payday? Have you been underpaid? Share your story! 🚨
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