[Australia] Unpaid super bill hits $1.4 billion for workers in Victoria

In Australia, new research has revealed that more than one in four Victorian workers were underpaid their super in 2022-23, representing a loss in retirement savings of more than $1.4 billion in that year, Medianet reports.

The analysis of new ATO data was carried out by the Super Members Council (SMC). It found that almost 850,000 Victorian workers were, on average, shortchanged $1,670 in super.

Unpaid super has reportedly cost Victorian workers more than $7.2 billion in a six year period. The federal electorate of Melbourne had the highest levels of unpaid super in Victoria with a total of $250 million, followed by McNamara and Lalor at $235.4 and $234m respectively.

Nationally, unpaid super cost Australians $5.7 billion in 2022/23 or $110 million a week. This loss, Medianet argues, can only be curbed by urgent payday super laws.

SMC’s data analysis was released in the wake of a new survey for SMC by Pyxis Polling and Insights which found that more than 70 per cent of Australians want payday super laws to come into effect on July 1, 2026. According to its findings, fewer than one in ten people think the laws should be delayed.

However, payday super is not on the Government’s legislative program for the current Parliamentary sitting fortnight.

SMC has reportedly urged the Government and Parliament to get on with passing payday super legislation in the first 100 days of the new Parliament. It says these urgent laws will help 3.3 million Australians with unpaid super get paid on time and in full.

In its submission on the payday super exposure draft legislation, SMC recommended some small but important changes to arm employers with support and confidence for the transition to the new payment regime, smoothing the way for implementation.

Its recommendations included extending the payment processing deadline from 7 calendar days to 7 business days, taking a phased approach to ATO enforcement in the early stages to give comfort to employers who are trying to do the right thing, and allowing employers to validate a worker’s correct super account details at any time to prevent processing errors.

Super Members Council CEO Misha Schubert said Australians cannot afford any delay to payday super laws.

“It’s disappointing the Government isn’t making payday super legislation a priority in this first sitting fortnight when millions of everyday Australians are losing $110 million a week in retirement savings,” Ms Schubert said.

“The average worker in Victoria could be shortchanged more than $30,000 from their final retirement nest egg if unpaid super isn’t fixed urgently.

“We urge all Parliamentarians to get on with passing payday super legislation in the first 100 days of this Parliament.”

Source: Medianet

(Link and quote via original reporting)

In Australia, new research has revealed that more than one in four Victorian workers were underpaid their super in 2022-23, representing a loss in retirement savings of more than $1.4 billion in that year, Medianet reports.

The analysis of new ATO data was carried out by the Super Members Council (SMC). It found that almost 850,000 Victorian workers were, on average, shortchanged $1,670 in super.

Unpaid super has reportedly cost Victorian workers more than $7.2 billion in a six year period. The federal electorate of Melbourne had the highest levels of unpaid super in Victoria with a total of $250 million, followed by McNamara and Lalor at $235.4 and $234m respectively.

Nationally, unpaid super cost Australians $5.7 billion in 2022/23 or $110 million a week. This loss, Medianet argues, can only be curbed by urgent payday super laws.

SMC’s data analysis was released in the wake of a new survey for SMC by Pyxis Polling and Insights which found that more than 70 per cent of Australians want payday super laws to come into effect on July 1, 2026. According to its findings, fewer than one in ten people think the laws should be delayed.

However, payday super is not on the Government’s legislative program for the current Parliamentary sitting fortnight.

SMC has reportedly urged the Government and Parliament to get on with passing payday super legislation in the first 100 days of the new Parliament. It says these urgent laws will help 3.3 million Australians with unpaid super get paid on time and in full.

In its submission on the payday super exposure draft legislation, SMC recommended some small but important changes to arm employers with support and confidence for the transition to the new payment regime, smoothing the way for implementation.

Its recommendations included extending the payment processing deadline from 7 calendar days to 7 business days, taking a phased approach to ATO enforcement in the early stages to give comfort to employers who are trying to do the right thing, and allowing employers to validate a worker’s correct super account details at any time to prevent processing errors.

Super Members Council CEO Misha Schubert said Australians cannot afford any delay to payday super laws.

“It’s disappointing the Government isn’t making payday super legislation a priority in this first sitting fortnight when millions of everyday Australians are losing $110 million a week in retirement savings,” Ms Schubert said.

“The average worker in Victoria could be shortchanged more than $30,000 from their final retirement nest egg if unpaid super isn’t fixed urgently.

“We urge all Parliamentarians to get on with passing payday super legislation in the first 100 days of this Parliament.”

Source: Medianet

(Link and quote via original reporting)