Super payments surge after reform
Since the introduction of Payday Super on July 1, monthly contributions to Australian workers’ superannuation accounts have surged, with initial research from ASFA indicating that approximately 7 million workers have transitioned from quarterly payments. This shift has led to a significant increase in transaction volumes, with around 54 million super payments processed in August, compared to a monthly average of roughly 25 million in the 2025–26 period.
ASFA anticipates that transaction levels will stabilize around the August figures as contributions are distributed more evenly throughout the year. The organization reports that most workers who previously received quarterly super payments now receive them weekly or fortnightly, though some have opted for monthly payments. Additionally, an estimated 2-3 million workers have likely switched from monthly to weekly or fortnightly contributions. ASFA’s chief executive, Mary Delahunty, noted that these early figures demonstrate the reform’s effectiveness.
Payday Super Reform
“Payday Super was designed to ensure super is paid concurrently with wages. Two months in, the data confirms this is happening for millions of workers. When super is paid sooner, it is invested earlier and accrues returns for a longer period,” Delahunty stated.
Benefits of Payday Super
A 25-year-old earning average wages could see an additional $5,000 in retirement savings solely due to more frequent payments. This reform also reduces the likelihood of workers missing out on their entitled super contributions. ASFA’s analysis utilized contribution data from the Gateway Network Governance Body, which oversees SuperStream transactions, along with insights from member funds. The data revealed a rise in contribution messages from 27 million in May to 34 million in June, peaking at 64 million in July.
Small business employees are experiencing the most significant changes, as their employers were more likely to pay super quarterly before the reform. A 2022 survey cited in the paper found that 49 percent of businesses with one to four employees paid super quarterly, compared to 13 percent of employers with at least 200 employees.
Impact on Small Businesses
One super fund with a high proportion of small business employers reported 3.5 times more employer contribution transactions post-reform. Funds with diverse employer bases saw around twice as many transactions, while those with more large employer members recorded approximately 1.35 times the previous volume.
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Industries heavily comprised of small businesses, such as construction, road transport, hospitality, beauty services, and cleaning, also have the highest rates of unpaid super. The Australian Taxation Office estimates that $6.2 billion in super guarantee contributions went unpaid in 2022–23.
“Younger Australians, tradespeople, and hospitality workers are among those most vulnerable to missing out on super due to unpaid contributions. Payday Super was specifically designed to protect these workers. Under the quarterly system, workers often discovered missing super four to six months after earning it. By then, the business might have liquidated, and the super could be unrecoverable. Now, employers have seven business days after payday to deposit super into a worker’s fund, allowing missed payments to be identified within weeks, not months,” Delahunty explained.
ASFA’s paper estimates that recovering unpaid super for a typical 35-year-old could boost their retirement savings by over $30,000 in today’s dollars. While the research predicts earlier detection of unpaid contributions, it warns that issues like sham contracting, the cash economy, and employer insolvencies will persist.
Delahunty urged workers to cross-check their super account records with their payslips. “Payday Super is effective partly because it allows you to compare your super statements with your payslip each pay cycle. It’s key to log into your super account and verify that contributions are actually being made, not just listed on your payslip. If discrepancies arise, discuss them with your employer first, and then contact the ATO if necessary,” Delahunty advised.
Future Expectations
Despite the increased payment frequency, Payday Super has not altered the 12 percent super guarantee contribution rate or the criteria for employer contributions. ASFA anticipates that APRA’s September 2026 quarter statistics will reflect a substantial one-off increase in employer contribution values due to overlapping July payments.
