How a 'game-changing' new superannuation move will affect you

The average worker has $30,000 stolen from their super by retirement. Here's how new laws will boost your nest egg.

New research shows only 30 per cent of Australians will retire "comfortably". New laws will ensure workers are paid properly, giving their super a boost. Source: Getty / Natalia Gdovskaia

Key Points

• Treasurer Jim Chalmers has introduced laws aimed at cracking down on unpaid super.
• It's estimated that the average affected worker has $1,800 in super stolen annually, or $30,000 by retirement.
• Industry groups have welcomed the move and labelled it a "game changer".

Employers will be forced to pay super contributions sooner under new laws cracking down on unpaid super for millions of Australians.

The Australian Taxation Office estimates $3.6 billion worth of super went unpaid in 2020-2021, particularly impacting those with insecure work such as young workers, migrant workers and women.

The average affected worker has $1,800 in super stolen annually or $30,000 by retirement, according to the Super Members Council.

The "game-changing" reforms, coming in from July 2026, will ensure that employees receive their super at the same time as their wages.

Treasurer Jim Chalmers has introduced new laws dubbed "payday super", ensuring workers have more when they retire. Source: AAP / Mick Tsikas

Treasurer Jim Chalmers said the policy would "ensure Australians earn more, keep more of what they warn, and retire with more as well".

"This change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers," Chalmers said.

Treasury estimates that the move will save the average 25-year-old worker around $6,000 by retirement.

How will the laws affect your retirement?

Research by the Association of Superannuation Funds of Australia (ASFA) found that roughly 30 per cent of Australians will be able to retire comfortably.

The group defines a comfortable retirement as the ability to afford everyday expenses, an occasional restaurant meal, and an overseas holiday once every seven years.

ASFA CEO Mary Delahunty said "payday super is a game-changer" as industry groups welcomed the change.

"This reform means workers will see their super build in real-time, alongside their wages. It will mean less lost super and better investment outcomes in preparation for retirement," Delahunty said.

"We are sure that this change will encourage people to engage more regularly with their retirement savings."

Under the laws, businesses will be incentivised to deposit super regularly or risk financial consequences.

Businesses will be liable if contributions are not made within seven days of payday, instead of the current quarterly requirement.

ACTU President Michele O’Neil said "every dollar in workers' super accounts is essential" to avoid theft and ensure workers retire with "dignity".

“When super is not paid regularly, the money is kept in employers’ accounts and that means workers lose large compound interest returns on their money," she said.

ASFA estimates that couples now need $690,000 in superannuation to fund their retirement, while singles need $595,000.