NSW and NT Lead in Super Underpayments
Recent analysis by the Super Members Council reveals that Australians have been shortchanged $24.4 billion in unpaid superannuation over five years from 2018 to 2023.
With $8.1 billion in underpayments, New South Wales recorded the highest total, while workers in the Northern Territory faced the highest average underpayment of approximately $2,140 annually.
On 1st July 2026, employers will be required by new payday super laws to pay superannuation simultaneously with wages, moving away from the current quarterly system.
Super Members Council champions these new laws, expecting them to eliminate unpaid super alongside enhanced recovery efforts by the Australian Taxation Office.
“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,” stated Misha Schubert, CEO of the Super Members Council.
Impact on Vulnerable Workers
Vulnerable groups, including women, younger workers, and low-income earners, suffer disproportionately from unpaid super. Women already retire with a quarter less super than men, and half of workers earning under $25,000 annually have unpaid entitlements.
Analysis from the Council suggests that underpayment of $1,730 in super in a single year could result in a retirement loss exceeding $30,000 due to lost investment returns.
Schubert added, “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.”
Employers using digital payroll systems have already begun paying super more frequently, and the new laws will ensure all businesses align with these improved practices. As of 2020-21, 56% of all small and medium businesses made super payments more frequently than quarterly.
The Australian Taxation Office plans a ‘pragmatic’ and ‘supportive’ compliance approach during the first year of implementation.
Over time, unpaid super compounds losses, leaving less well-paid workers with significantly less money in retirement. The Super Members Council’s 2024 report underscored the scale and urgency of the unpaid super challenge, affecting one in four workers and costing them nearly $6 billion a year.
Payday super will boost transparency for workers, typically assuming their super has been paid with wages, making underpayments easier to spot and fix. The new laws will also simplify cash flow management and worker entitlements for employers, leveling the playing field for businesses already fulfilling their obligations.
