{"id":102538,"date":"2025-03-16T18:00:00","date_gmt":"2025-03-16T07:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=102538"},"modified":"2025-03-16T17:55:20","modified_gmt":"2025-03-16T06:55:20","slug":"aussie-workers-set-for-a-6000-super-boost-under-new-law","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/aussie-workers-set-for-a-6000-super-boost-under-new-law\/","title":{"rendered":"Aussie Workers Set for a $6000 Super Boost Under New Law"},"content":{"rendered":"\n<p>From<strong> July 1, 2026<\/strong>, Australian employers will be required to <strong>pay superannuation at the same time as salary or wages<\/strong>, marking a major shift from the current system, which allows payments to be made quarterly.<\/p>\n\n\n\n<p>The federal government says this reform will increase retirement savings, ensure workers receive the full super they are entitled to, and make it easier to detect unpaid contributions. <\/p>\n\n\n\n<p>The move has been welcomed by industry experts, who say it could add thousands of dollars to workers\u2019 retirement funds and help combat non-compliance among employers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is changing<\/h2>\n\n\n\n<p>Currently, employers must contribute at least 11 percent of an employee\u2019s earnings into their superannuation fund. However, these contributions are only required to be paid every three months. This delay means employees miss out on the compounding growth that more frequent contributions would provide.<\/p>\n\n\n\n<p>The new payday super system will mandate that super is paid at the same time as wages or salaries. The government argues this will not only boost retirement balances but also help workers track their super more effectively.<\/p>\n\n\n\n<p>Assistant Treasurer Stephen Jones described the reform as a major improvement for workers and businesses alike.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cPayday super will make it easier for employers to manage their payroll by paying super at the same time as salary and wages. This will also help workers build their retirement savings faster.\u201d<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">How much will workers gain<\/h2>\n\n\n\n<p>Industry analysis suggests that moving to payday super will have a substantial impact on workers\u2019 retirement savings.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A 25-year-old earning the median wage <strong>could see an additional 6000 dollars<\/strong> in their superannuation balance by retirement.<\/li>\n\n\n\n<li>Research from the Super Members Council estimates that nine million Australians could receive <strong>up to 7700 dollars more<\/strong> in retirement savings because of the compounding effect of more frequent contributions.<\/li>\n\n\n\n<li>The policy is expected to particularly benefit lower-income workers, women, and casual employees, who are often most at risk of superannuation underpayment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A crackdown on unpaid superannuation<\/h2>\n\n\n\n<p>Beyond increasing retirement savings, the reform is also designed to tackle unpaid superannuation, a long-standing issue in Australia. The Australian Taxation Office estimates that 5.2 billion dollars worth of super was left unpaid in 2021-22.<\/p>\n\n\n\n<p>While most employers comply with super obligations, some either intentionally or accidentally fail to pay the correct amount. With quarterly payments, unpaid super frequently goes unnoticed for months or even years.<\/p>\n\n\n\n<p>Mr. Jones stressed that the change will help detect and prevent unpaid super earlier.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis will tackle the scourge of unpaid super directly. While most employers do the right thing, there are too many cases where workers are missing out on thousands of dollars they are entitled to.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>By aligning super with <a href=\"https:\/\/en.econostrum.info\/au\/jobseeker-payments-still-low-escape-poverty\/\" target=\"_blank\" rel=\"noreferrer noopener\">regular wage payments<\/a>, employees will be able to check their super contributions at the same time they check their pay slips, making underpayments easier to spot.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What this means for businesses<\/h2>\n\n\n\n<p>Employers will need to adjust their payroll systems to accommodate more frequent super payments. However, the government argues that the change will ultimately simplify processes.<\/p>\n\n\n\n<p>Instead of setting aside super contributions to be paid every three months, businesses will send contributions to super funds automatically with each payroll cycle, reducing compliance risks.<\/p>\n\n\n\n<p>Misha Schubert, CEO of the Super Members Council, said the new law would improve fairness in the system.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cCrucial payday super laws will make the system fairer for both workers and businesses, so more workers are paid the super owed to them and businesses compete with each other on a level playing field.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The <a href=\"https:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noreferrer noopener\">Australian Taxation Office<\/a> will be responsible for enforcing compliance, and the government has hinted at stronger penalties for businesses that fail to meet their obligations.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australian workers are in for a major payday super boost, with a new rule set to shake up retirement savings. A simple change could mean thousands of extra dollars in super, but many don\u2019t realize the impact yet.<\/p>\n","protected":false},"author":5,"featured_media":102547,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-102538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=102538"}],"version-history":[{"count":9,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102538\/revisions"}],"predecessor-version":[{"id":102548,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102538\/revisions\/102548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/102547"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=102538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=102538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=102538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}