Superannuation contributions are booming, with fresh data showing the number of payments going into the country’s retirement savings scheme has more than doubled in the last two months.
Around 54 million super payments were processed in August, according to new research by the Association of Superannuation Funds of Australia (ASFA). That’s compared to an average of around 25 million a month last financial year.
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The reason for the huge uplift is the introduction of payday super.
Since July, employers have been required to pay super at the same time as they pay employee wages and salaries. Previously, super only had to be paid quarterly.
In July, a whopping 64 million super payments were processed as many employers made their last quarterly payments under the old rules alongside their first payday contributions.
“When super is paid sooner, it is invested sooner and earns returns for longer,” ASFA CEO Mary Delahunty said.
“A 25-year-old on average wages will have around $5000 more in retirement just from more frequent payments. It has also made it less likely that workers will miss out on being paid the super they are entitled to.”
ASFA estimates around 7 million workers who were paid super quarterly are now being paid at the same time as wages. A further 2 to 3 million are likely to have moved from monthly to weekly or fortnightly payments.
Small businesses were the most likely to pay quarterly, with one super fund with many small business employers receiving three and a half times more contributions than previously.
Aussies pile into super following tax changes
Australia’s major super funds have also reported a surge in members voluntarily topping up their superannuation.
AustralianSuper, the country’s biggest fund, saw voluntary contributions increase 35 per cent in June compared to the previous year, with the spike continuing through July and August.
Voluntary contributions typically spike ahead of June 30 each year as people look to claim tax benefits, but this year’s increases have been above the annual jump.
MLC reported extra contributions increasing by 35 per cent between May and August this year, compared to the same period last year. The surge is understood to be worth hundreds of millions of dollars.
Colonial First State reported voluntary contributions by FirstChoice members jumping 28.7 per cent over the first two months of the 2026-27 financial year, compared to the same period last year.
The sharp increases have coincided with capital gains tax and negative gearing changes announced by the government in the May federal budget.
Super was exempt from the capital gains tax changes, retaining its 33 per cent discount. Assets are generally taxed at 15 per cent, resulting in an effective capital gains tax rate of 10 per cent for investments held longer than 12 months.
CFS chief executive of superannuation Kelly Power said voluntary contributions to super were tracking above expectations, particularly among younger members under 40.
“The capital gains tax changes don’t take effect until 1 July next year, and that will be a key milestone in understanding how members and investors ultimately respond,” she said.
“While it is still too early to draw definitive conclusions, at the moment the data suggests Australians are paying close attention to how new policy settings may influence their long-term financial and retirement outcomes.”
Super pool hits $4.8 trillion
Australia’s total super assets increased by 6.6 per cent over the June quarter to hit $4.8 trillion, according to the latest APRA data.
Employer contributions were up 9.5 per cent over the year to June 2026 to $164.4 billion, while member contributions increased 21 per cent to $71.9 billion.
ASFA expects data for the upcoming September quarter will show a large one-off rise in the value of employer contributions, with levels to return to normal from the December quarter.
Total household wealth in Australia hit a record $19.39 trillion in the June quarter, up 1 per cent or $201.1 billion.
ABS head of finance statistics Dr Mish Tan said strong growth in super had driven the growth, with super assets rising 5.2 per cent and offsetting a 0.2 per cent fall in the value of land and dwellings.
“Superannuation growth was driven by growth in global and domestic equity markets, as they recovered from relatively low share price levels at the start of the Middle East conflict in March,” Dr Tan said.
“Despite the value of land and dwellings falling for the first time since September 2022, it remains 8.0 per cent higher compared to the same period last year.”
Global X ETFs Australia senior strategist Marc Jocum said the figures were a “powerful reminder that wealth is a multi-asset game”.
“Property, shares and superannuation all play different roles, and understanding how they work together is becoming increasingly important for Australian investors,” he said.
This content was created in partnership with CommSec.
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