Victorians short-changed $1.3bn in super payments

At least one in four Victorians are being underpaid their superannuation entitlements, with workers in the state missing out on an average of $1750 each per year.

Victorians are being short-changed on their super entitlements, leading to poorer retirements.

Victorians are being short-changed $1.3bn a year in superannuation, with new research showing at least one in four workers are underpaid.

The super industry is warning against any delays to a federal government plan to crackdown on the scourge, by making employers pay their employees’ super at the same time as their wages or salary from July 2026.

The message comes after the small business lobby last week reignited calls for Labor to reconsider the reforms, saying the reduction from quarterly payments will create extra administrative costs that will increase the burden on businesses.

Super Members Council analysis of tax file data reveals that more than 755,000 Victorian workers missed out on an average of $1740 each in 2021-22.

The largest average underpayment was $2150 in the rural electorate of Mallee in the state’s north west, while the greatest percentage of underpaid workers were in McEwen, north of Melbourne, at 31 per cent.

Super Members Council chief executive Misha Schubert said unpaid super made people poorer when they retire.

“Hundreds of thousands of Victorian workers are paying the price every single day their super goes unpaid – and cannot afford any delay to the introduction of payday super,” Ms Schubert said.

The small business lobby has reignited calls for Labor to reconsider superannuation reforms.

“This reform is long overdue and by the time payday super is introduced from July 1, 2026, business and the industry will have had more than three years to prepare.

“We urge all parliamentarians and stakeholders to work together to pass payday super legislation this term.”

But the government is yet to release the legislation for consultation and few sitting weeks remain before an election is due by May 17.

Opposition financial services spokesman Luke Howarth said payday super could be added to the long list of legislation promised by the government that has been hugely delayed or was yet to materialise on the eve of an election.

“Small businesses deserve certainty about if this will happen, when it will start and how it will work,” Mr Howarth said.

“If there are fundamental flaws with this payday super policy, the government should be upfront about it and not leave millions of small businesses, and their accountants and bookkeepers who will have to comply with the new requirements, in regulatory limbo.”

But Financial Services Minister Stephen Jones said the legislation would be released shortly for consultation, giving industry almost 18 months to prepare.

“This will help to address the scourge of unpaid superannuation and is part of the government’s efforts to ensure Australians earn more, keep more of what they earn, and retire with more as well,” Mr Jones said.

The Council of Small Business Organisations Australia has previously called for small businesses to have the option to pay super monthly, and raised concerns about penalties for late payments that may be out of their control.