Paying super contributions on pay day is a simple fix that will benefit workers and improve retirement savings for older Australians, COTA Australia – the peak advocacy organisation for older Australians – says.
The Federal Government today announced that from 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages.
COTA Australia Chief Executive Officer, Patricia Sparrow, says the change, which COTA has long advocated for, will strengthen Australia’s superannuation system.
“This simple change will see workers better off when they reach retirement,” Ms Sparrow says.
“Everyone deserves to live comfortably in retirement and while of course this won’t solve all the problems people face when it comes to retirement income, it’s certainly a very sensible step forward.
“Paying superannuation infrequently leads to people ending up with less in their accounts when they reach retirement and we know that it is women and those in casual, lower-paid work who are hit hardest by that.
“This will make it much simpler for workers to keep track of their super and help ensure people can live the life they deserve in retirement.
“It is another step towards ensuring that superannuation is paid on every dollar earned.”
Ms Sparrow said it’s also good to see increased resources to ensure the ATO can better detect unpaid super contributions.
