Payday super laws begin on 1 July 2026
Unpaid super is costing Australians $6.3 billion a year, according to new analysis of Australian Taxation Office data by the Super Members Council.
In 2023-24, 3.4 million workers were underpaid an average of $1,850. That was 28% of workers, or more than one in four.
Compared with the previous year, the total annual loss rose by $500 million. Average underpayment also increased from $1,730.
From 1 July 2026, payday super laws require employers to pay super at the same time as wages instead of once every three months.
Super Members Council chief executive Misha Schubert said: “Unpaid super is on the rise, cutting billions of dollars each year from Australians’ retirement savings and highlighting why payday super laws are very much needed.”
NSW, WA and ACT figures
Across the states and territories, underpayments in New South Wales surpassed $2 billion. NSW and Western Australia recorded the highest share of underpaid workers, with both at 29%.
In the ACT, workers had the highest average underpayment at $2,360. However, the territory had the lowest share of underpaid workers at 20%.
Because of missing super and lost compounding returns, some workers could retire with more than $30,000 less.
Among the hardest hit groups are women, who already retire with about a quarter less super than men.
Younger workers and low-income earners also face higher risk. One in two workers earning less than $25,000 a year has unpaid super entitlements.
In a recent survey, more than 70% of Australians said payday super would help them track whether employers were paying correctly. More than half said they would check their super more often.
During the first 12 months, the Australian Taxation Office will use a graduated approach to enforcement. It will focus on areas of highest risk while businesses shift to the new system.
With digital payroll and single touch payroll systems now available to all employers, about 40% of businesses already pay super more often than quarterly.
Since payday super was announced, ATO data shows about 19,000 more employers have started paying super more frequently than quarterly. As a result, the share of employers doing so rose by 2.4 percentage points.
