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Workers in the ACT have missed out on a total of $80 million in superannuation with almost one in five workers being underpaid, according to recent data.
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ACT unpaid super elevates push for payday super reform
12 November 2024
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New research from the Super Members Council (SMC) revealed almost one in five ACT workers had been underpaid super, missing out on a total of $80 million.
An SMC analysis of tax file data highlighted that more than 34,000 ACT workers were underpaid an average of $2,330 each in 2021–22, which caused ACT workers to lose $357 million over five years.
SMC said this result put more emphasis on the upcoming super payday reform in July 2026.
According to the analysis, the average worker would be $7,700 better off in retirement with payday super as the returns would accrue and compound sooner.
SMC CEO Misha Schubert said the figure on unpaid super for ACT workers was shocking and highlighted the benefits payday super would have on all Australians.
“Paying super on payday will modernise the super system to reduce underpayments for ACT workers. This reform will be fairer for both workers and employers,” Schubert said.
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“Passing payday super laws this parliamentary term is crucial to ensure Canberrans who are currently short-changed are paid their super on time and in full.”
The SMC super analysis also found that in 2021–22, 2.8 million Australians missed out on $5.1 billion in legal super entitlements, over nine years Australians had missed out on $41.6 billion in unpaid super and the average affected worker missed out on $1,800 in super a year.
Schubert said the payday super laws would help all Australians reap the full benefits from the retirement system as well as help level the playing field for businesses.
With the payday super laws, a new compliance regime was also set to be released which would encourage employers to fix inadvertent underpayments quickly and would escalate stronger penalties for deliberate or repeated underpayments.
The payday super laws would require super to be paid in line with a worker’s wages, rather than once a quarter.
Frequent super payments would also create smoother cash flow management for businesses, as quarterly payments allowed large super liabilities to accrue and created an administrative burden which added to miscalculations and incorrect payments, according to SMC.
Schubert said the crucial reform needs to be pushed by members of government so Australians, such as the ACT workers, are given superannuation “justice.”
“Unpaid super leaves people poorer when they retire. A unified push from the government, all MPs and Senators, the super industry, employers and workers are needed to stamp it out.”
“We urge all parliamentarians and stakeholders to work towards passing payday super legislation this term. These pivotal reforms are urgent to fix ACT’s persistent unpaid super problem.”
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