WORKERS in the Redlands have been underpaid a staggering $29 million in superannuation over the course of a year, with nearly a quarter of the local workforce missing out on contributions, according to research from the Super Members Council (SMC).
Analysis of tax file data shows that almost 17,000 workers in the region were underpaid an average of $1700 each in the 2021-22 financial year.
Over a five-year period, Redland workers lost a total of $145 million in unpaid super, a shortfall that leaves many unable to adequately save for retirement.
Experts warn that this could cost individual workers more than $30,000 in lost retirement savings over their lifetime.
The Australian Government has committed to implementing reforms aimed at addressing the widespread issue of unpaid super, with plans to introduce “payday super” starting in July 2026.
Under this reform, super contributions will be paid alongside wages rather than on a quarterly basis, ensuring workers receive their super more regularly.
SMC’s analysis suggests that these changes will have a significant impact on workers’ retirement savings.
The shift to payday super is expected to leave the average worker $7700 better off by allowing their super to accumulate investment returns sooner.
Members Council CEO Misha Schubert emphasised the importance of the reforms, noting that payday super would modernise the system and reduce underpayments, benefiting both workers and employers alike.
“Passing payday super laws this Parliamentary term is crucial to ensure Redland workers who are currently being short-changed are paid their super on time and in full,” Ms Schubert said.
She added that the reforms would level the playing field for businesses, making it easier for employers to manage cash flow while reducing administrative burdens associated with quarterly super payments.
The current system often leads to miscalculations, further contributing to the unpaid super problem.
Ms Schubert urged all parliamentarians and stakeholders to work together to pass the payday super legislation, calling it an urgent step to fix the Redlands’ ongoing superannuation shortfall and ensure fairer outcomes for workers across the country.
- In one year, 2.8 million Australians missed out on $5.1 billion in legal super entitlements (2021-22)
- Over 9 years, Australians have missed out on $41.6 billion in unpaid super
- The average affected worker missed out on about $1800 in super in a year.
