Hospo workers could be thousands better off with payday super
With the federal budget looming, the government has proposed that all businesses pay their employees superannuation on payday.
This would help workers, but businesses who pay wages on a quarterly basis could be hit hard.
The move would make it harder for employers not to pay the super guarantee at all, which is costing workers billions in unpaid super each year.
The government would like to see the change implemented by July 1, 2026.
“This simple change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers,” Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones said in a statement.
Industry Super Australia research payday super would boost retirement savings for 4.2 million workers.
Federal government calculations show the switch from quarterly to fortnightly or monthly would see a 25-year-old worker on a median income be about $6000 better off in retirement.
It is also expected to alleviate pressure on the Australian Taxation Office (ATO and its ability to identify debts.
The ATO found employees missed out on $3.4 billion in unpaid super in 2019-20.
“Payday super will also make it easier for employees to keep track of their payments and harder for them to be exploited by disreputable employers,” Chalmers and Jones said.
The government will consult industry and stakeholders during the next financial year.
A three-year lead time would give businesses time to prepare.
The move would be one step in broader superannuation reform, which includes Workplace Relations Minister Tony Burke’s legislation to protect workers from superannuation underpayments.
Under this reform, workers not covered by awards or enterprise agreements may take direct legal action to recover unpaid super.
Jonathan Jackson, 2nd May 2023
