Treasurer Jim Chalmers introduced payday super legislation to parliament today, with the laws set to come into effect from July 1 next year. (Source: AAP\/Getty) <\/p>\n
Australian workers are one step closer to having their superannuation<\/a> paid at the same time as their wages. Payday super laws<\/a> have been introduced to parliament today, after being announced by the government<\/a> more than two years ago.<\/p>\n Employers<\/a> are currently legally required to pay super quarterly. But from July 1 next year, new payday super rules would require employers to pay employee\u2019s super<\/a> within seven days of their wages.<\/p>\n The move is designed to help tackle unpaid super<\/a>, which the Super Members Council found cost 3.3 million Aussies $5.7 billion in super payments in the 2022-23 financial year. That\u2019s an average of $1,730 each a year, which can add up to a loss of $30,000 in retirement<\/a>.<\/p>\n RELATED<\/p>\n Treasurer Jim Chalmers introduced the bill to parliament today, which will also update penalties and charges for late or missed payments.<\/p>\n “In a typical unpaid super case, for a 35-year-old, recovering their super leaves their retirement balance more than $30,000 better off in today\u2019s dollars,” Chalmers said.<\/p>\n “While most employers do the right thing, some disreputable ones are exploiting their employees.”<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n The Super Members Council said the change was \u201clong overdue\u201d and has urged parliament to pass the laws promptly to meet the looming start date<\/a>.<\/p>\n \u201cThe introduction of payday super legislation has been a long time coming, it\u2019s time to get this done,\u201d Super Members Council CEO Misha Schubert said.<\/p>\n \u201cPayday super is a simple, fair and urgent reform to help ensure every dollar owed to workers makes it into their super account on time and in full. Millions of Australians cannot afford to wait.<\/p>\n \u201cPayday super is also tipped to deliver an average of an extra $7,700 for working Australians by retirement because being paid your super sooner helps to grow your retirement savings<\/a> faster.\u201d<\/p>\n Australian business owners have raised concerns over the payday super changes<\/a> and the risk of penalties to employers.<\/p>\n Under the new rules, employers who miss the seven-day payment deadline would be liable for an updated super guarantee charge. This would include the shortfall amount, daily interest, and an extra enforcement charge.<\/p>\n Daniel McGowan, owner of Lucky Cat Cafe in Ipswich, previously told Yahoo Finance he broadly supported the introduction of payday super but admitted it would \u201cadd another layer of stress\u201d<\/a>.<\/p>\n The small business owner is already juggling rising rents, wages and operating costs, and said the change may mean he needs to trim staff shifts and work behind the counter himself.<\/p>\n \u201cI need to have that cashflow right here and now to put into the business to go straight into superannuation,\u201d he said.<\/p>\n \u201cI don\u2019t think this is going to hurt staff in that they\u2019re going to get less hours. But it is a consideration now, and I\u2019ve spoken to them about it.”<\/p>\n The Council of Small Business Organisations of Australia has said it supports the principle of payday super<\/a> but has called for a phased approach to implementation.<\/p>\n The group has argued businesses need more time to ensure the system is fully prepared before a stricter seven day requirement is enforced.<\/p>\n The reform was first announced in the 2023-24 federal budget, giving employers, super funds and software providers three years before the start date.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Lucky Cat Cafe owner Daniel McGowan said upcoming payday super legislation would have an impact on his small business. (Source: Supplied) <\/p>\n