Securing bipartisan support for the payday super reforms would give both workers and businesses greater certainty about the proposed payday super reforms ahead of the federal election, according to the Super Members Council (SMC).

Under the proposed changes, employers would be required to pay workers’ super at the same time as their wages, instead of quarterly.

The reform was first announced over 18 months ago. In the meantime, the government has engaged with industry and stakeholders to finalise the details of the new law. However, the reform is yet to secure formal bipartisan support.

According to SMC, synchronising super payments with wage payments would see the average Australian worker accrue $7,700 more at retirement, as more frequent payments would compound faster.

“Paying super on payday will modernise the super system to stem underpayments for workers. This urgently needed reform will be fairer for both workers and employers,” Misha Schubert, chief executive of SMC, said.

“Australians want payday super to be law. With an election due shortly, both workers and employers deserve certainty that payday super is going ahead on time, with full support from both major parties.

“Millions of Australians are paying the price every single day their super goes unpaid – they cannot afford any delay to the introduction of payday super.”

SMC said a payday super system would lead to smoother cash flow operations for small businesses. Quarterly super payments generate large lump-sum liabilities for businesses, which can lead to miscalculations and super underpayments.

According to SMC analysis, in 2021–22, 2.8 million Australians missed out on $5.1 billion in legal super entitlements. Australian workers have missed out on $41.6 billion in unpaid super over the past nine years.

Unpaid super can cost the average worker more than $30,000 from their final retirement savings.

SMC said payday super would help tackle the issue of super underpayment, and allow businesses to operate without being undercut by employers who underpay their workers’ super.

As digital payroll systems become common, employers have been paying their workers’ super more frequently. In 2020–21, 56 per cent of small and medium businesses made super payments more often than quarterly, according to SMC.

A November 2024 survey found that Australians are largely in favour of payday super, with 74 per cent of 3067 respondents supporting the reform.

If signed into law, payday super would take effect from July 2026. Employers who fail to pay their workers’ super within seven days of payday would be liable for additional charges, such as the super guarantee charge.