Over $1 billion returned: ATO protects workers’ retirement savings
Ben Kelly
New data released yesterday shows the Australian Taxation Office (ATO) has helped return over $1.1 billion in unpaid super to over 900,000 Australians’ super funds in the past year.
ATO compliance actions and engagement with employers has resulted in more than $1.1b in super guarantee charge (SGC) liabilities being raised, a significant increase from $795m in the previous financial year.
Deputy Commissioner Ben Kelly said the results demonstrate the ATO’s continued focus on protecting the retirement savings of Australian workers.
‘Super is there to support Australians in retirement. We understand how important it is that workers are not shortchanged on this vital entitlement, as it can have a significant impact on their future financial position,’ Mr Kelly said.
The ATO is reinforcing that employers must get up to date with their obligations, with encouraging signs seen following prompts sent to employers to correct potential unpaid super resulting in $467m in SGC being disclosed by employers, compared to $206m in the prior year.
‘Paying the super workers are entitled to is non-negotiable. We know the vast majority of employers do the right thing, with nearly 93% of super guarantee obligations being met without any ATO intervention,’ Mr Kelly said.
‘However, for a small proportion of employers who chose not to act following our prompts, we have used firmer compliance activities and raised almost $250 million in penalties.’
The introduction of Payday Super from 1 July 2026 has helped employers meet their super guarantee obligations, ensuring employees receive what they are entitled to and strengthening protections for workers’ retirement savings. It is important to note that who is entitled to super and the super guarantee rate have not changed under Payday Super.
Employers must pay super each payday, with contributions generally required to reach employees’ super funds within seven business days of payday.
‘More frequent payments mean employees receive their super sooner, giving their savings more time to grow,’ Mr Kelly said.
‘Employees also have greater visibility of their super entitlements, helping them better understand and track contributions throughout their working lives. We expect the shift to the Payday Super system will also help us identify any unpaid super earlier and take more timely action.’
‘Every dollar of unpaid super is money that should be helping Australians build their retirement savings,’ Mr Kelly said.
Early implementation data shows that many employers are now paying super more frequently under the Payday Super system, with the superannuation ecosystem continuing to operate efficiently despite higher demand. Encouragingly, the number of rejected contributions has fallen, even though volumes have increased and super funds have less time to process contributions.
‘Employers who have not yet moved to Payday Super timeframes should do so as soon as possible,’ Mr Kelly said.
‘We will continue to use the data that is reported to us to ensure employers meet their obligations and workers receive the super they are entitled to.’
The ATO has resources to help employers check they are meeting their super obligations, including guidance on how to set up, calculate and pay super, at ato.gov.au/superforemployers.
A snapshot of the ATO’s super guarantee compliance results is available at [ato.gov.au/sgsnapshot]ato.gov.au/sgsnapshot.
