Unlocking Superannuation: Why Employees Need to Beware of Misleading Promises

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Key Points

The payday superannuation bill requires employers to pay superannuation at the same time as wages.
Advocacy groups have welcomed the changes, but have raised concerns about certain measures that have been dropped.
Some argue the reform was intended to achieve more than just preventing delayed payments.

The government’s recent changes to superannuation contributions have been praised as a “game-changer” for workers, but there are some concerns after some consumer protection measures were left out of the final legislation.

The payday superannuation bill, requiring employers to pay superannuation at the same time as wages from July 2026, passed federal parliament on Tuesday. Based on current legislation, super payments must be made at least four times a year, on or before the quarterly superannuation due dates.

According to Treasurer Jim Chalmers, the new laws are equivalent to “an extra $6,000 in today’s dollars” for the average 25-year-old worker’s retirement balance.

In a typical scenario involving unpaid superannuation for a 35-year-old individual, reclaiming their superannuation can enhance their retirement fund by over $30,000 in today’s dollars, according to a joint statement from Chalmers and Assistant Treasurer Daniel Mulino.

“The earlier this money is deposited into your super and starts being invested on your behalf, the quicker it begins to yield investment returns,” they noted.

Superannuation advocacy groups, including the Association of Superannuation Funds of Australia, the Super Members Council (SMC), and Super Consumers Australia, have largely welcomed the bill.

SMC CEO Misha Schubert told SBS News: “It’s going to be a game-changer for ensuring that workers across our country get every dollar of the super they have earned but never received.”

“[The legislation] will make it a lot easier to track any underpayments of super or missed payments.

Concerns have been raised regarding the absence of expected consumer protection measures in the final legislation.

The Australian Taxation Office reports that as of June 2025, approximately 21% of Australians maintain more than one superannuation account.

“This reform is only partially complete. Although individuals will receive their superannuation payments more swiftly, many will continue to be misled into opening multiple accounts, ultimately costing them tens of thousands in retirement savings,” a source commented.

A Treasury report from July last year into the payday super measures recommended limiting super fund advertising during employee onboarding, suggesting it would yield annual net benefits of $20 million to $167 million.

It further suggested improvements to the onboarding process to inform employees if they have an “existing stapled fund”, estimating 325,000 people join an advertised fund each year through hiring platforms.

The modelling suggested a ban would “result in a reduced number of duplicate superannuation accounts”, and employees will benefit by between $16 million $280 million in increased savings from fewer duplicate accounts. On the other hand, the report suggested that a ban might cost employers $234 million per year.

Some advocacy groups argue these sections could have helped reduce the number of people holding multiple super accounts and encouraged them to save more for retirement.

Some 21 per cent of Australians hold more than one superannuation account as of June 2025, according to the Australian Taxation Office.

Xavier O’Halloran, CEO of Super Consumers Australia, said the super reforms were intended to achieve more than just preventing delayed payments.

“It was meant to stop people [from] being influenced into creating duplicate accounts they never wanted, and that part has been dropped,” he said.

“We now have a half-finished reform. People will get paid their super faster, but many will still be misled into creating multiple accounts, costing them tens of thousands in retirement income,” he said.

Schubert said she’d like these onboarding protections to start on 1 July 2026, along with the other measures.

“That’s crucial for consumers, and it’s crucial for employers because having those protections in place from the very start of payday super is the right way to approach that,” she said.

“It’s really important that people understand they’ve got that option to continue with the same super fund they already have.

“So that you don’t end up inadvertently having a situation where people open multiple new accounts each time they change jobs, and then suddenly are paying significantly higher fees because they’re paying fees on every account that they have.”

Association of Superannuation Funds of Australia CEO Mary Delahunty said “there’s always more to do in super” but not “every proposed reform can be expected to land in one go”.

“We’ll continue partnering with policymakers to strengthen disclosure frameworks and improve retirement outcomes for all Australians,” she said.

SBS News has contacted Treasury for comment.