Unpaid super is back in the headlines. An ABC report on 22 October says about one in four Australian workers is underpaid super by their employer, adding up to about $6 billion a year. It also says the ATO recovers only around 15 per cent of unpaid super on average, a figure the report links to a 2022 audit office review. The ATO disputes the framing and points out that 92 per cent of super contributions by dollar value are paid voluntarily.

For small employers, the practical point is simple: staff are being encouraged to look, and payday super makes problems easier to spot.

Why this matters under payday super

Since 1 July 2026, super must reach the employee's fund within 7 business days of payday. Research from the Association of Superannuation Funds of Australia found about 54 million super payments were processed in August, compared with an average of about 25 million a month in 2025-26. ASFA's CEO is urging workers to log in and check that their super is actually arriving.

That means a missed or late payment is no longer hidden for three months. An employee can see a gap within weeks, and the ATO has more real time data to work with.

What late super can cost

According to the ATO, if super is not paid correctly under payday super, you may owe the super guarantee charge. The ATO's guidance describes a late payment penalty of 25 per cent of the outstanding amount, rising to 50 per cent for a repeat within 24 months, plus interest. The ATO also says you cannot claim a deduction for the interest. Rules for the first year are covered in an ATO compliance guideline, so check the current page for your situation.

What to do this week

  • Reconcile, do not assume. Compare each pay run since 1 July with what your employees' funds actually received.
  • Check for rejected payments. Wrong member numbers or fund details are a common cause.
  • Fix shortfalls promptly. The sooner you pay what is owing, the better your position with the ATO.
  • Set payments to run with each pay cycle. Do not rely on a quarterly habit.
  • Keep evidence. Save payment confirmations and clearing house or software reports.
  • Talk to staff. If someone asks about their super, check it quickly and give a clear answer.

Industries with many small businesses, such as building, road transport, cafes, hairdressing and cleaning, are named as having high rates of unpaid super, so the scrutiny is likely to be greatest there. If you find a problem and are unsure how to correct it, speak to your accountant before you lodge anything.

This article is general information only and does not take your circumstances into account.