‘Short-changed’: Workers miss out on billions as super changes still not ready

The wait for long-flagged superannuation changes have cost Australian workers billions of dollars.

While Australians wait for major superannuation changes to kick in, workers have missed out on $5.1bn in just a single year.

From mid-2026, businesses will have to pay super on payday, rather than quarterly.

Those more frequent payments add up to more interest and a more comfortable retirement, but the bill to change the law still has not been released by the federal government.

Analysis by the Super Members Council shows in the meantime, Australian workers missed out on $5.1bn in the 2021/2022 financial year.

“Paying super on paydays will modernise the super system to stem underpayments for Australian workers,” Super Members Council chief executive Misha Schubert said.

Assistant Treasurer Stephen Jones (not pictured) will retire before the payday superannuation changes come into effect. Picture: NewsWire / Martin Ollman

“This urgently needed reform will be fairer for both workers and employers,” she said.

The Super Members Council analysed tax file data to put a number on the effect of promised, but as-yet missing legislation which will reform super payments.

More than 2.8 million Australians missed out on $5.1bn of super payments in the 2021/2022 year, the analysis finds.

During the previous nine years, Australians would have received $41.6bn more in superannuation; about $1800 each year for the average worker.

“Unpaid super makes people poorer when they retire. Passing payday super laws to start in July 2026 is key to ensure Australians currently being short-changed are paid their super on time and in full,” Ms Schubert said.

The Coalition has made an election promise to allow first homebuyers to use $50,000 of their superannuation to buy a home; a scheme which would extend to divorced women. Picture: NewsWire / Nikki Short

“Hundreds of thousands of Australian workers are paying the price every single day their super goes unpaid - and cannot afford any delay to the introduction of payday super.”

In last year’s budget, the federal government announced the change from quarterly to every-payday payments.

“More frequent payment of superannuation will empower employees to track their entitlements and make it harder for them to be exploited by disreputable employers,” a government fact sheet reads.

“More frequent superannuation payments will also make employers’ payroll management smoother with fewer liabilities building up on their books.”

The Super Members Council analysis finds had the payday reforms been enacted, the average Australian worker would have banked an extra $1800 into super per year. Picture: NewsWire / John Appleyard

The Council of Small Business Organisations Australia says the reform is “not achievable” because 18 months out, the laws which will mandate the changes have not been introduced to parliament.

Council chief executive Luke Achterstraat raised the alarm in a letter to Assistant Treasurer Stephen Jones, as reported by The Australia.

“We are 21 months since that announcement was made (but) we are yet to see what has been drafted into the legislation,” Mr Achterstraat said in the letter.

“There is no confidence in the business, software (and) adviser community that concerns about the implementation of the policy as stated – (such as) the financial impact on businesses, the cost of change, the technical changes to software, gateways, superfunds – have been considered.”

Mr Jones’ said businesses had three years between the changes being announced and the reform coming into effect. The legislation “will shortly be released for consultation”, he said earlier this month.