media release
2 May 2023
To be attributed to HESTA CEO Debby Blakey
HESTA welcomes the Federal Government’s announcement of reforms requiring compulsory Super Guarantee contributions to be paid to super accounts at the same time as wages, which will benefit women and low-paid workers.
This will make it easier for members to see their super contributions with their pay and help millions of working Australians who bear the financial impact of delayed or unpaid super payments.
Industry funds like HESTA have campaigned for this reform for years. Analysis shows that about 1 million Australian women are deprived of more than $1.3 billion in super contributions they are owed yearly[1].
I commend the Federal Government for tackling the issue of improving the cycle of payment of super to maximise the best retirement outcomes, as this is money working Australians are entitled to.
Industry Super Australia analysis shows about a quarter of women working in predominately female workforces, including childcare and aged care, are disadvantaged by delayed or underpayment of super, costing them up to $40,000 from their retirement savings. This reform could mean up to 10 per cent extra in their super accounts when they retire.
It is important to remember that some employers were already paying super with wages, and this change will mean it is a level playing field for all.
For working Australians, ‘payday super’ will also result in their super going into their accounts sooner, where they can start earning a return and growing for retirement.
Ends.
[1] Industry Super Australia Super Solution: How payday super will benefit women in retirement.