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The Super Members Council demands that all political parties support a fast-track of the payday super legislation instead of the announced date in 2026.
As the federal election draws closer, the Super Members Council (SMC) has called on all parties and candidates to pledge their commitment to passing the pay super laws in the first 100 days of the new Parliament.
As previously reported on HR Leader, Assistant Treasurer and Minister for Financial Services Stephen Jones recently released a draft legislation for payday super. The legislation aims to reduce the billions of dollars in unpaid super every year.
According to the council, as it stands, unpaid super costs workers $5 billion a year in lost retirement savings, with Super Members Council chief executive Misha Schubert claiming that Australian workers must be ensured by the differing candidates and parties that this legislation will be passed immediately.
“By the time these laws start on 1 July 2026, Australian workers will have waited three years for these reforms. Millions of Australians pay the price of unpaid super every single day. They cannot afford any delay,” Schubert said.
“Payday super will dramatically reduce the level of unpaid super, improve compliance with the law and make the super system fairer for workers and businesses alike.”
In a submission to the Treasury, the council recommended a number of refinements to the legislation, including the move to extend the payment processing deadline from seven calendar days to seven business days, giving employers added cushion during the early stages of the implementation.
The council also proposed allowing employers to validate a worker’s correct super account details at any time to prevent processing errors.
“Over the coming year, concerted effort will be needed from the ATO, employers, payroll personnel, digital service providers, and super funds to prepare for this crucial reform,” Schubert said.
“This is why this legislation must be passed swiftly – in the first weeks of the next parliamentary term – to enable businesses and the super payment system to prepare with confidence and certainty.”
“These small and sensible changes to the current draft bill will give employers the confidence they need and will help pave the way for passage of this game-changing legislation.”
The council claimed that one in four workers across Australia currently misses out on some or all of the super owed to them, arguing that vulnerable workers such as casual workers, women in low-paid industries, and migrant or newly arrived workers are more likely to have unpaid super.
“As a strong voice advocating for more than 11 million everyday Australians with retirement savings in profit-to-member super, SMC asks all candidates to declare their clear backing for the laws,” an SMC statement said.
“When super goes unpaid, it makes working Australians poorer in retirement, denying them crucial income to pay the bills after a lifetime of hard work.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
