In this guide
Payday Super legislation passed
Employers will be required to pay employees their superannuation entitlements at the same time as their wages from next financial year, following the Treasury Laws Amendment (Payday Superannuation) Bill passing through the Senate.
Depending on their risk level, the implementation of the legislation will include transitional relief for some employers until 30 June 2027.
The Association of Superannuation Funds of Australia (ASFA) chief executive Mary Delahunty said the reforms would go some way to address the problem of unpaid super.
“Payday Super is one of the most significant reforms to the superannuation system in decades, and it’s long overdue. Paying super with wages will make the system fairer, boost retirement balances and ensure super is achieving its core objective,” she said.
“Our focus now is practical delivery. The detail in the regulations is now crucial as we work to help every part of the system prepare for this change. We’ll be working closely with Treasury, the Australian Taxation Office (ATO) and our members to ensure it’s done efficiently and effectively,” Delahunty said.
Learn more about Payday Super.
$19 billion in lost and unclaimed super
There is currently almost $19 billion in lost and unclaimed super potentially belonging to over seven million people, according to the ATO.
“Checking for lost or unclaimed super is like reaching into your pocket and finding a $50 note – it’s your money, you just didn’t know it was there,” ATO deputy commissioner Ben Kelly said.
The average lost amount is $2,590. Around four million people hold two or more accounts, which could potentially be consolidated into one account, making it easier for people to keep track of.
Kelly said there are various reasons someone could ‘lose’ their super, for example, if their account was inactive and the fund couldn’t find them. Changing jobs, moving house or just simply forgetting to update details were other reasons people could lose their super.
“This super is not lost forever. The ATO wants to get this lost and unclaimed money back into your account,” he said.
In the last three years alone, the ATO has reunited or paid out unclaimed super accounts valued at almost $5.5 billion.
Learn how to find your lost super.
Leave a Reply
You must be logged in to post a comment.