A major shake-up to how superannuation is paid in Australia is on the horizon — and for millions of workers, especially those nearing or already in retirement, it could make a real difference to their financial security later in life.
Treasurer Jim Chalmers on Thursday, October 9 introduced the Payday Superannuation Bill into parliament, which would require employers beginning July 1 to make superannuation contributions within seven business days of payday.
Dr Chalmers said it would strengthen Australia’s superannuation system and combat wage theft. Unpaid super totalled almost $5.2 billion in 2024/25, he said, and more frequent payments should help with detecting unpaid super contributions more quickly.
“Our government is ensuring more Australians earn more, keep more of what they earn and retire with more too,” the Treasurer said.
The reform — first announced in the 2023 federal budget and now shaped by extensive consultation — has been warmly welcomed by superannuation and retirement advocates, who describe it as a “simple but powerful” change that’s long overdue.
“Payday Super is a simple but powerful reform that will boost the retirement savings of every Australian employee and help address the problem of unpaid super. Australians have been waiting three years for this policy to become law. It’s a hugely popular reform, with 80% of Australians polling in favour of it,” said Association of Superannuation Funds of Australia CEO Mary Delahunty.
Patricia Sparrow, Chief Executive of COTA Australia – the leading advocacy organisation for older people – said the change is particularly significant for women, part-time workers, and those in lower-paid or insecure jobs.
“This reform closes a loophole that has cost workers thousands over their careers. Paying super at the same time as wages is fair, transparent, and long overdue,” Sparrow said.
“Australians work hard all their lives – they deserve a system that values their contribution and pays what they’ve earned, when they’ve earned it.
“We’ve been calling for this for years because we know the difference it makes. We welcome the Government’s leadership in making super payments fairer and more transparent and we’re looking forward to the legislation passing swiftly through Parliament.”
Sparrow added that while the reform won’t solve every challenge facing retirees, it’s an important step towards greater financial security in later life.
“Timely super payments mean more Australians can look forward to financial independence and dignity in their later years,” Sparrow said.
“Every missed or delayed super payment compounds over time – and for older Australians, that can mean the difference between comfort and hardship in retirement.
“As Australians live longer and healthier we need to ensure the retirement phase of superannuation is set up to better support older Australians.”
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.