The federal government will spend $404.1 million over the next four years to implement its payday super measures, set to commence on 1 July 2026.
Treasurer Jim Chalmers announced the spending would begin in the current financial year to introduce the Securing Australians’ Superannuation Package, which will require employers to pay employee super entitlements at the same time as their salary and wages.
The figure was included as part of the Mid-year Economic and Fiscal Outlook 2024/25, released yesterday, which also stated the government would introduce legislation to recalibrate penalties and charges for employers missing payments, as well as adding more severe consequences for deliberate and repeated failures.
The Association of Superannuation Funds of Australia (ASFA) welcomed the government’s push to get the measure operational, pointing out it would lead to better retirement outcomes for lower-income earners, women and casual workers.
ASFA chief executive Mary Delahunty said: “This reform means workers will see their super build in real-time alongside their wages. It will mean less lost super and better outcomes in preparation for retirement. We are sure that this change will encourage people to engage more regularly with their retirement savings.
“It’s about fairness. Payday super makes it much more likely Australians will receive the super contributions they’ve earned, paid on time, every time.
“In real terms, a 25-year-old median-income earner currently receiving quarterly super payments will be $6000 better off in retirement just through receiving fortnightly super contributions.”
ASFA noted ATO data showed there were more than 500,000 cases of underpayment and over 200,000 cases of non-payment of super in the 2022 financial year estimated to be worth $5 billion in lost retirement savings.