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Government allocates more funding to payday super
In a bid to help implement the payday super measure that requires employers to pay their employees’ super entitlements at the same time as their wages, Federal Treasurer Jim Chalmers has announced an additional $404 million in funding over four years.
“The Government will also introduce legislation to recalibrate penalties and charges, incentivising employers to promptly rectify missed payments, with more severe consequences for deliberate and repeated failures,” Chalmers said in the Mid-Year Economic and Fiscal Outlook 2024–25.
The additional funding for the measure due to begin on 1 July 2026 was welcomed by industry associations.
“This reform means workers will see their super build in real-time, alongside their wages. It will mean less lost super and better outcomes in preparation for retirement. We are sure that this change will encourage people to engage more regularly with their retirement savings,” chief executive of the Association of Superannuation Funds of Australia (ASFA), Mary Delahunty said.
There were more than 500,000 cases of underpayment and over 200,000 cases of non-payment of super in the 2021-22 financial year, according to ATO data, amounting to over $5 billion in lost retirement savings.
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