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Payday Super laws could save Australians $5.7 billion

9 October, 2025

New legislation set to be tabled in the Australian Parliament today could revolutionise the way superannuation is paid, potentially saving workers up to $5.7 billion in unpaid contributions.

The proposed “payday super” laws would require employers to pay super at the same time as wages, rather than quarterly as is currently the case.

Under current rules, employees often struggle to track whether super payments are up to date, particularly when their wages vary weekly. Lobbying groups argue that the quarterly system costs Australians approximately $110 million a week and leaves some workers up to $30,000 worse off by retirement.

Mary Delahunty from the Association of Superannuation Funds of Australia (ASFA) explained that underpayment can go unnoticed until it’s too late. “Often, by the time an employee discovers they’ve been underpaid, the employer is insolvent or unreachable, making it impossible to recover what they’re owed,” she said.

Supporters of the reform argue it would particularly benefit women and younger workers, groups most at risk of losing super due to employer delays or insolvency. Misha Schubert, CEO of the Super Members Council, described the reforms as simple but urgent: “Payday super is a fair and effective reform to ensure every dollar owed reaches workers’ super accounts on time and in full. Millions of Australians cannot afford to wait.”

The reforms are expected to take effect from July 1 next year. Experts predict that paying super more promptly could deliver an average of an extra $7,700 per worker by retirement, as earlier contributions allow for faster compounding growth in retirement savings.

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