Why is payday super reform still stuck in limbo?
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For more than 18 months the Australian government has been weighing a seemingly obvious reform: requiring employers to pay super at the same time they pay wages.
Surprising as it sounds, that’s not how it works right now.
Employers are only required to pay superannuation quarterly, which can leave workers missing out on up to $7,700 in their retirement balance due to the delayed contributions, according to the Super Members Council (SMC).
Despite the clear benefits, the proposal remains in limbo - a situation Super Members Council chief executive Misha Schubert says needs to change.
“Paying super on payday will modernise the super system to stem underpayments for workers. This urgently needed reform will be fairer for both workers and employers,” Schubert says.
She points to recent data showing strong public support for the reform, with 74% of Australians backing the change and just 3% opposed.
“Australians want payday super to be law. With an election due shortly, both workers and employers deserve certainty that payday super is going ahead on time, with full support from both major parties.”
The cost of unpaid super
Unpaid super is far from a minor issue. According to a recent SMC report, in the 2021-22 financial year alone, 2.8 million Australians missed out on a combined $5.1 billion in super - around $1,800 per affected worker.
That’s money that should have been growing in retirement funds but never made it there.
And the impact isn’t evenly spread. Women, young workers and people in insecure jobs are more likely to be underpaid, often carrying that disadvantage all the way to retirement. Small and micro business employees also face higher risks, as smaller employers can struggle with making super payments on time (much less quarterly).
In some parts of the country, the scale of underpayment is staggering. Places like Sydney (NSW) and Durack (WA) each saw more than $45 million in unpaid super in a single year.
While many businesses already pay super more frequently than quarterly, there’s currently too much room for missed payments and errors. Payday super would address much of this, by making it harder for underpayments to slip through the cracks.
“Millions of Australians are paying the price every single day their super goes unpaid – they cannot afford any delay to the introduction of payday super,” Schubert says.
Staying engaged with your super
Payday super reforms would go a long way to ensuring your super guarantee is paid on time, every time - but you still need to do your part. Therefore, it’s worth checking in now and again to make sure everything is on track.
Here’s how to stay on top of it:
- Review your contributions. Ask your employer whether they pay super on payday or quarterly, then check your super fund to see if the money has actually been paid. If anything looks off, reach out to your fund or the ATO to help you investigate.
- Look at your fund’s performance and fees. If your balance isn’t growing as expected or fees seem high compared to your returns, it might be time to explore other options.
- Think about your long-term strategy. Super isn’t just about what’s being paid now, it’s about how it’ll grow over decades. Ensure your current investment mix and fund align with your retirement goals.
Not sure if your fund’s delivering? Check out the winners of the latest Mozo Experts Choice Awards for Superannuation - or browse some of the top-performing super funds below.
Compare super funds on Mozo
Vanguard
- Winner of the 2025 Mozo Experts Choice Awards for Exceptional Super Fund for Gen Z and Low Fee MySuper.
- Benefit from one of the lowest fees on the market^.
- Choose a strong performer. Vanguard Super’s flagship Lifecycle option delivered a 16.44% annual return for members aged 47 and under – that’s above the industry median ^^
- Smart, auto-adjusting investments with their Lifecycle investment option
- Decide how your super’s invested – choose their Lifecycle investment option which automatically adjusts as you age, or take control of your super by selecting your own investments.
While relatively new to Australia’s superannuation landscape, Vanguard Super benefits from Vanguard’s 50 years of global investment expertise. The Vanguard Group was born in 1975 as a new kind of investment firm that would put investors first. The vision was to empower individuals by making sophisticated investment strategies simple and accessible to everyone. Not surprisingly, it took off. Now, they’re directing that same attitude to super.
Colonial First State Super (CFS)
- CFS has helped over 3 million Australians (and counting) prepare for an unaverage retirement
- Focused on delivering low admin fees and strong investment performance, helping you build your retirement savings faster
- Investment flexibility: Aged-based lifestage option or design your own portfolio from over 190 investment options
- Named Australia's Best Super Fund in the Mozo Experts Choice Awards
Looking for a super fund that blends experience with a focus on your financial future? Colonial First State (CFS) Super has been helping Australians grow their retirement savings for over 30 years. With a wide range of investment options, CFS lets you tailor your super to suit your goals, whether you’re after a balanced approach or more growth-oriented strategies. CFS is laser focussed on providing long-term performance for its members and states its FirstChoice Wholesale Personal Super options has one of the lowest admin fees in the market.
Colonial First State also has a range of free online tools to make it stay on top of your super and learn about investment choices. CFS also has a range of accessible advice options, to meet all customer needs. CFS has engaged Viridian Advisory to facilitate the provision of one-off personal financial product advice under their Australian Financial Services License to CFS members, as an agent of CFS. CFS also provides access to low-cost digital advice through Otivo Pty Ltd and on-going comprehensive advice through a network of third-party financial advisers.
Colonia First State was named Australia's Best Super Fund in the Mozo Experts Choice Superannuation Awards.
Virgin Money Super
- Mozo Experts Choice Award winner for Exceptional MySuper + Low Fee MySuper 2025
- Strong performing fund - 8.45% for 7 years investment returns to 30 June 2024 for birth year 1984 to 1988 (7.70% for 5 years investment returns to 30 June 2024 for birth year 1984 to 1988) for the Lifestage Tracker Option.
- Earn Velocity points on contributions and any funds rolled over (T&Cs apply)
- Simple super advice at no additional cost + automatic Death and Total Permanent Disablement cover
Virgin Money Super is a retail superannuation fund available to Australians and backed by Mercer Super, who has been providing superannuation related services to Australians for over 40 years. It offers a range of investment options from a fully managed Lifestage Tracker that does the investment work for you, to a choose your own investment mix option that gives you the opportunity to invest your money where you’re most comfortable. One Velocity Frequent Flyer Point will be awarded for every $5 of Net Super contribution during the Points Earn Period and the maximum number of Velocity Points in any financial year is 250K.
Virgin Money Super also provides automatic Death and Total Permanent Disablement cover and includes additional insurance options. Members can also get simple super advice over the phone from a qualified financial adviser at no additional cost.
Spaceship Super
- Choice of growth or Index fund option
- Simple fee structure
- Digital dashboard to help you see where and how your super is invested
- Mozo Experts Choice Award winner - High Growth
Spaceship Super first launched in 2017, and says that above all else it’s focussed on building long-term value for its members. This is why the fund’s options are primarily suited to people who are looking to save for retirement for at least the next 10 years, or longer. Members have a choice of the GrowthX option, which has a focus on Global technology companies, and the Global Index option which passively invests in growth assets, particularly international shares. Both options have a competitive performance track record according to Spaceship (based on annualised performance since inception) and have a simple fee structure.
Spaceship Super’s digital platform helps you to keep track of your balance, and also gives you visibility of where and how your super is invested. If you’re saving for your first home, you can also set up a first super saver account.
Winner of a Mozo Expert Choice Award for Exceptional Super in the High Growth Category.
Australian Retirement Trust
- One of Australia’s largest super funds with 2.3 million members and over $280 billion in retirement savings
- Profits for members
- Focused on strong long term investment returns and lower fees
- Exclusive member deals and discounts
- Mozo Experts Choice Awards winner - Exceptional Super Growth category
The Australian Retirement Trust (ART) is one of Australia’s newest super funds formed out of the merger of Sunsuper and QSuper. ART is open to all Australians, works for members and not shareholders, which means its focus is on lower fees and better value products and services. It has a range of investment options depending on your risk appetite and lifestage and offers members rewards including exclusive discounts at retailers.
Membership also includes personal financial advice about your super accounts with them and eligible members are also provided with automatic Death and Total & Permanent Disability Assist cover. Tailored cover is also available (T&Cs apply).
ART was named a Mozo Experts Choice Superannuation Award winner for Exceptional Super in the Growth category.
Hostplus
- Industry super fund, profits go to members, not shareholders
- Over 1.77 million members and $103.7 billion in funds under management
- Strong investment performance over past 20 years together with low fees
- Mozo Expert Choice Award winner - Low fee Super
While Hostplus’ origins are from the hospitality and tourism industry, it is now available to all Australians. As an industry fund, profits go back to members and it invests in projects that aim to derive strong investment returns for its members. It also aims to keep its fees and costs as low as possible. It has an option for members who want more control to make direct investments or you can also opt to let Hostpluses experts take care of your investments for you.
Hostplus also offers a range of insurance options (some automatic for eligible members), as well as financial planning and super advice to help you set and meet your retirement goals. Some advice may incur fees based on the level of advice.
A Mozo Experts Choice Superannuation Awards winner for Low Fee super categories
UniSuper
- Record of strong long-term performance across a range of investment options with 615,000 members and $124 billion in funds under management.
- Fees among the lowest in the industry
- Responsible investor - Environmental, Social and Governance (ESG) factors are considered across its major investment holdings
- No commissions to advisers or profits to shareholders, member first fund
- Highly Commended Super Fund Award winner - Mozo Experts Choice Awards
UniSuper is open to all Australians, though it built its reputation as the industry fund for the higher education sector. It has a record of strong long term investment performance (though this isn’t an indicator of future performance). According to recent Member Outcome Assessments, UniSuper promotes the best financial interests for its members and has some of the lowest administration fees in the industry. UniSuper champions responsible investment and its ESG approach includes direct engagement with companies on ESG issues as well as offering its members environmental and sustainable options to invest responsibly.
General advice about super and pensions is included as part of your membership but there are also paid advice services which vary in cost depending on the level of advice required.
Unisuper was awarded the Highly Commended Super award in the 2025 Mozo Experts Choice Superannuation Awards.
Vanguard disclaimers:
^Independent fees and costs benchmarking conducted by Deloitte, shows Vanguard MySuper Lifecycle as one of the lowest fee MySuper products as at 1 March 2024. Deloitte has only included publicly offered APRA regulated superannuation funds. The benchmarked fees and costs reference ongoing annual fees and costs disclosed in the PDS. Other fees and costs may apply.
^^ Vanguard Lifecycle Age 47 and under annual return compared against the median return for Growth (77-90) options, SuperRatings Fund Crediting Rate survey, 2024 calendar year. Past performance is not a reliable indicator of future performance.
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