Recent analysis highlights that unpaid superannuation has increased by $600 million from the previous year, with a decade-long accumulation exceeding $47 billion. Full-time workers in Australia missed out on an average of $1,730 in superannuation in the 2022-23 financial year, with the amounts rising to $2,220 in the Australian Capital Territory and $2,030 in the Northern Territory. The issue affected over one million workers in New South Wales and 850,000 in Victoria.
Georgia Brumby, SMC's deputy chief executive, stressed that Australians have been awaiting the implementation of payday superannuation for nearly three years. She urged legislators to expedite the process, noting that delays cost Australians $110 million weekly in their retirement savings, adversely impacting their financial security in later life.
Brumby emphasised that the sooner the legislation is enacted, the better it will prepare businesses and the superannuation payment system, ensuring workers receive their entitlements punctually and completely. The introduction of the payday super system is projected to add approximately $8,000 to the average Australian worker's retirement savings due to increased payment regularity and the benefits of compounding returns.
As part of the public consultation on the draft legislation, the SMC submitted a series of recommendations to aid employers in transitioning to the new system. These include:
- Extending the payment processing deadline from 7 calendar days to 7 business days.
- Implementing a phased approach to ATO enforcement to accommodate employers making genuine efforts to comply.
- Allowing employers to verify employee super account details at any time to prevent errors during processing.
