HomeBusiness$5.1 Billion Superannuation Shortfall: A Growing Concern for Workers

$5.1 Billion Superannuation Shortfall: A Growing Concern for Workers

One in Four Australians Short-Changed on Retirement Savings

A staggering one in four Australian workers is being short-changed on their superannuation, costing them an estimated $30,000 by retirement, according to the Super Members Council. In 2021-22, about 2.8 million Australians were underpaid a total of $5.1 billion in superannuation, averaging $1,800 per worker.

The issue disproportionately affects blue-collar workers, young people, and casual staff. The problem stems from laws allowing businesses to pay super quarterly rather than alongside wages. 

As a result, nearly two-thirds of businesses were found to be paying super on a quarterly basis during the reported period, leading to underpayments and delayed contributions.

The Assistant Treasurer has announced that from July 1, 2026, employers will be required to pay super at the same time as wages. 

However, this change has yet to be legislated. The proposed shift is expected to improve super balances and reduce underpayments by ensuring more timely payments.

Workers earning up to $25,000 a year are particularly affected, with half of them missing out on their super. The issue is also prevalent among those over 60, who often need to work longer due to inadequate superannuation funds. 

The council’s analysis highlights that workers in construction, trades, and transport are among the most affected by these underpayments.

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