WORKERS in Ipswich have been underpaid a staggering $31 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 20,000 workers in the region were underpaid an average of $1590 each in the 2021-22 financial year.
Over a five-year period, Ipswich workers lost a total of $137 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 Federal 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.
Super 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.
“Passing payday super laws this Parliamentary term is crucial to ensure 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.
Ms Schubert urged all parliamentarians and stakeholders to work together to pass the payday super legislation, calling it an urgent step to fix Ipswich’s ongoing superannuation shortfall and ensure fairer outcomes for workers.
