Australians are missing out on almost $5 billion in superannuation entitlements every year, with one in four workers affected nationwide.<\/p>\n
Workers were underpaid $24.4 billion across five years between 2018 and 2023, according to the latest Australian Taxation Office data analysed by the industry group Super Members Council.<\/p>\n
NSW had the highest value of underpayments over the five years, totalling an eye-watering $8.1 billion, followed by Victoria ($6.1 billion) and Queensland ($4.7 billion).<\/p>\n
The impact of underpayment intensifies over a person\u2019s working life.<\/p>\n
Some $1730 in missed super in one year could potentially leave someone $30,000 poorer at retirement due to lost compounding of investment returns.<\/p>\n
\u201cUnpaid super hits hardest where it hurts most \u2013 for women, younger workers and people on low incomes,\u201d council chief executive Misha Schubert said.<\/p>\n
Women already retire with 25 per cent less retirement savings than men, according to the Association of Superannuation Funds of Australia.<\/p>\n
Young workers and low-income earners were also at risk of underpayment, with one in every two people on less than $25,000 missing unpaid super.<\/p>\n
\u201cThis is money Australians have earned but never been paid \u2013 and it\u2019s leaving millions significantly poorer at retirement,\u201d Ms Schubert said.<\/p>\n
Workers in the Northern Territory were the worst impacted, underpaid an average of $2140 in super entitlements each year, followed by the ACT ($2120), and Western Australia ($1800)<\/p>\n
From July 1, payday super laws will come into effect, requiring employers to pay superannuation contributions within seven days of paying wages.<\/p>\n
Super funds will have three business days to allocate or return the contributions, improving transparency for workers.<\/p>\n
The reform would be a game-changer for unpaid entitlements, Ms Schubert said.<\/p>\n
\u201cThis long-overdue shift to pay super with wages will make any underpayments visible, easier to fix, and far harder to hide,\u201d she said.<\/p>\n
For its part, the tax office plans to take a pragmatic approach to compliance during the first 12 months of the reforms.<\/p>\n
\u201cEmployers who make an honest mistake and take steps to fix it quickly won\u2019t be the focus of ATO compliance action in the first year,\u201d tax office deputy commissioner Emma Rosenzweig said.<\/p>\n
Almost half of businesses already pay superannuation more frequently than quarterly, as currently required.<\/p>\n
\u201cIt\u2019s important to plan ahead \u2013 review and check with your payroll provider about readiness to pay super guarantee more frequently, and start transition planning early,\u201d Ms Rosenzweig said.<\/p>\n
However, real-time super payments could put pressure on businesses already under financial strain, according to insolvency and business recovery specialist Jirsch Sutherland.<\/p>\n
\u201cIn effect, super has operated like a \u2018buy now, pay later\u2019 mechanism for some businesses \u2013 and that flexibility is about to disappear,\u201d partner Chris Baskerville said.<\/p>\n
Sectors with high payroll costs and tight margins would likely face greater pressure.<\/p>\n
\u201cThese are industries with very little margin for error,\u201d Mr Baskerville said.<\/p>\n
\u201cWhen super has to be paid every cycle, there\u2019s far less capacity to absorb uneven or seasonal cash flow.\u201d<\/p>\n
As of the end of 2025, Australians had a total of $4.5 trillion in super.<\/p>\n
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