Latest news with #Georgia Brumby
News.com.au
7 days ago
- Business
- News.com.au
Simple change set to pocket Aussies $110m in super a week
Australian workers are losing $110m a week in unpaid superannuation. Super Members Council (SMC) analysis of 2022-2023 tax data shows 3.3 million Australian workers lost collectively $5.7bn in superannuation payments. This is based on the average worker losing $1730 in superannuation a year. Australians living in the ACT or the Northern Territory had the highest average underpayment, while more than one million people in NSW lost $1760 a week, 848,000 Victorians lost about $1670 and 377,450 people living in Western Australia lost $1790. The SMC said unpaid super could cost the average worker more than $30,000 from their final retirement nest egg. When not intentional, superannuation underpayment can occur due to the timing of payments. While wages and salaries are paid weekly, fortnightly or monthly, businesses only need to pay the superannuation guarantee quarterly. Under new laws coming in July 1 2026, superannuation payday reforms will require employers to pay superannuation, salaries and wages at the same time. These reforms have been three years in the making after the federal government first announced the changes back on May 2, 2023. SMC deputy chief executive Georgia Brumby said Australians would pay the price for any further delays. 'Each week these laws are delayed, Australians are made $110m poorer in retirement, which means less money to pay the bills after a lifetime of hard work,' Ms Brumby said. 'The sooner this legislation is introduced and passed, the more time and certainty it will give businesses and the super payment system to prepare so all workers can get paid their super on time and in full. 'Payday super will not only stamp out unpaid super, it'll put nearly $8000 more in the average Australian's pocket at retirement thanks to more frequent payments and the power of compounding.'
Yahoo
15-07-2025
- Business
- Yahoo
ATO reveals $5.7 billion superannuation issue costing millions in retirement: 'Stamp out'
Australians are losing $5.7 billion in retirement savings each year due to employers not paying their superannuation entitlements correctly, new analysis of Australian Taxation Office (ATO) data has revealed. The huge losses have sparked calls for 'payday super' reforms to be passed when parliament returns this month. About 3.3 million Australians missed out on superannuation entitlements, averaging $1,730, in the 2022-2023 financial year, Super Members Council analysis of taxation data found. The amount of super going unpaid increased by $600 million from the previous year, with workers now losing $110 million each week. More than one million people were underpaid super in New South Wales at an average of $1,760, more than 848,000 in Victoria at an average of $1,670, and more than 679,000 in Queensland, missing out on an average $1,720. RELATED Aussie cafe owner's 'pressure' of impending $124,000 superannuation change NAB, ANZ slash interest rates as lenders move despite RBA cash rate hold: 'Not a coincidence' ATO tax return warning for 2 million Aussies over dangerous act Payday super reforms will mean employers are required to pay their employees' superannuation at the same time as their salary and wages. Under the current rules, it only has to be done quarterly. The reform, first announced in May 2023, is due to come into effect from July next year. However, it has not yet been legislated by the government. Super Members Council Deputy CEO Georgia Brumby said any delays to the law would mean less money in retirement for Australians, which means "less money to pay the bills after a lifetime of hard work". 'The sooner this legislation is introduced and passed, the more time and certainty it will give businesses and the super payment system to prepare — so all workers can get paid their super on time and in full,' she said. 'Payday super will not only stamp out unpaid super — it'll put nearly $8,000 more in the average Australian's pocket at retirement, thanks to more frequent payments and the power of compounding.'Leading accounting bodies have been calling on the government to delay the planned start date of the legislation. CPA Australia, CA ANZ and the Tax Institute said they all support the plan but have argued the July 1, 2026 date is 'unreasonable' and 'should be deferred for, ideally, 24 months, but at least 12 months'. They have argued the payment of super is more complex than wages and involves clearing houses, payment gateways and super funds. Employers will be given a seven-calendar-day deadline from the payment of wages to pay superannuation. If this is missed, they will be liable for an updated super guarantee charge which would include the shortfall, daily interest and an extra enforcement charge. In November, the ATO revealed its actions had led to $932 million in previously unpaid super reaching the retirement accounts of 797,000 employees in the past year. The ATO noted that more than 92 per cent of super entitlements were paid without the need for ATO intervention. Employees can check their super account via myGov to see what super payments have been paid into their funds. If you suspect your super hasn't been paid in full, on time and to the correct fund, the ATO recommends checking with your employer and your nominated super fund. You can report unpaid super to the ATO.
