THE HON STEPHEN JONES MP
ASSISTANT TREASURER
MINISTER FOR FINANCIAL SERVICES
MEMBER FOR WHITLAM
MEDIA RELEASE
Assistant Treasurer, Minister for Financial Services and Member for Whitlam, Stephen Jones has today met with local hospitality workers and union representatives to discuss the devastating impacts of unpaid superannuation.
Minister Jones heard firsthand about claims of unpaid super and outlined how the Albanese Government is committed to protecting workers and strengthening the super system. This includes the government’s commitment to payday super, which will require employers to pay their employees’ super at the same time as their salary and wages from 1 July 2026.
While most local employers do the right thing, analysis of ATO data from the Super Members Council shows one in four workers (26%) in the electorate of Whitlam were underpaid their proper super entitlements in 2020-21 (latest tax office data available). That amounts to a total of $28 million in unpaid super locally during this period.
Payday super will address unpaid super by making it easier for workers and the Australian Tax Office to track payments, making it harder for them to be exploited by dodgy employers.
By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement. The change will particularly benefit lower paid workers, casuals, and women.
According to analysis of ATO data from the Super Members Council, there is a 30% superannuation gap between men and women in the region across all age cohorts. This compares to 25% nationally and 23% in New South Wales (2020-21).
Payday super will also benefit local businesses in the Illawarra, making payroll management smoother and minimising the chances for inadvertent mistakes and preventing liabilities building up on their books. The 2026 start date will provide employers, superannuation funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change.
The government is also providing the Australian Tax Office with additional resources to help crack down on unpaid super payments more quickly, and recently passed the Closing Loopholes Act which criminalises wage theft.
If you believe your employer isn’t paying your super contributions, you can visit the ATO website: Unpaid super from your employer | Australian Taxation Office (ato.gov.au)
Quotes attributable to Member for Whitlam Stephen Jones:
“The stories I’ve heard from these workers today are just devastating. Superannuation is crucial for the retirement incomes of millions of Australians and our government is focused on ensuring super theft doesn’t occur.
“I’m putting dodgy employers in the Illawarra on notice – super theft is theft, and you will be caught. While most do the right thing, I want to remind our community that employers are required to pay a percentage of their employee’s salary or wages into a super fund in addition to wages.
“Through the introduction of payday super, we’re ensuring workers are paid their superannuation entitlements more frequently, so they can monitor contributions easier. It’s good for employees and it’s also good for businesses.”
[ENDS]
