The Australian Taxation Office (ATO) has recovered more than A$1.1 bn in unpaid superannuation for over 900,000 Australian workers during the 2025/26 financial year, following increased compliance activity targeting employers who failed to meet their retirement contribution obligations.
The regulator raised A$1.17 bn in super guarantee charge (SGC) liabilities, up from A$795 mn in the previous financial year. The increase followed more extensive employer engagement, targeted audits and enforcement measures.
- The Australian Taxation Office recovered more than A$1.1 bn in unpaid superannuation for over 900,000 workers, raising A$1.17 bn in super guarantee charge liabilities, compared with A$795 mn a year earlier.
- Employers disclosed approximately A$465 mn in unpaid super after ATO compliance prompts, while stronger enforcement measures resulted in nearly A$250 mn in penalties.
- Payday Super, introduced on July 1, 2026, requires employers to make superannuation contributions alongside regular salary payments, allowing the ATO to identify unpaid entitlements earlier.
ATO Deputy Commissioner Ben Kelly said the results demonstrated the agency’s commitment to recovering retirement savings owed to employees.
Every dollar of unpaid super is money that should be helping Australians build their retirement savings
Ben Kelly, ATO Deputy Commissioner
The recovery figures were released as the tax authority assessed the early impact of Payday Super, which took effect on July 1, 2026, replacing quarterly superannuation contributions with payments aligned to employees’ regular pay cycles.
ATO raises A$1.17 bn in unpaid super liabilities
During the financial year, the ATO contacted more than 254,000 employers through reminders, compliance prompts, targeted reviews and audits.
The regulator reported an increase in voluntary disclosures after businesses received notifications about potentially unpaid superannuation.
Employers disclosed approximately A$465 mn in SGC liabilities during 2025/26, compared with A$206 mn the previous year. Other reporting placed the latest figure at A$467 mn.
The ATO attributed the increase to stronger compliance engagement and greater willingness among employers to correct outstanding obligations.
For businesses that failed to respond, the regulator applied additional enforcement measures.
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 mn in penalties.
The ATO reported that nearly 93% of super guarantee obligations were fulfilled without regulatory intervention, indicating that most employers continued to meet their statutory payment requirements. “Paying the super workers are entitled to is non-negotiable. Super is there to support Australians in retirement,” Kelly said.
How much unpaid superannuation are Australian workers missing?
Despite the recovery efforts, unpaid superannuation remains a substantial problem for Australian employees.
Research from the Super Members Council estimates that workers miss out on approximately A$6.3 bn in superannuation contributions annually.
That represents an average shortfall of about A$1,850 per affected worker each year.
Over an entire working life, missed contributions and the resulting loss of investment returns can leave employees more than A$30,000 worse off at retirement.
The financial impact extends beyond the original unpaid contribution because superannuation savings are generally invested over many years, allowing investment returns to accumulate.
Delayed payments reduce the amount of time those contributions remain invested, potentially lowering retirement balances even when the outstanding amounts are eventually recovered.
Kelly said the ATO recognised the consequences of unpaid super for workers’ future financial security. “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,” he said.
Payday Super introduces new payment rules for employers
Australia’s Payday Super reforms, effective July 1, 2026, require businesses to pay superannuation contributions in line with their regular payroll cycles rather than quarterly.
Employers paying salaries weekly, fortnightly or monthly must now make corresponding superannuation payments at those intervals.
Under the new framework, contributions generally must reach employees’ superannuation funds within seven business days of payday.
The changes are designed to make contribution payments more consistent, improve transparency for employees and reduce the time between wages being earned and retirement savings being deposited.
More frequent reporting also gives the ATO earlier access to information about employers potentially falling behind on their obligations.
The regulator’s initial implementation data indicates that many employers have already shifted to more frequent superannuation payments. The number of rejected contributions has also declined, despite higher payment volumes and shorter processing periods.
The ATO intends to continue examining payroll information to identify discrepancies and recover outstanding amounts.
One in four Australians reports problems with super payments
A Finder Consumer Sentiment Tracker survey involving 1,011 respondents found that 25% had experienced problems with employer superannuation payments.
The research, conducted around the introduction of Payday Super in July, identified several types of payment failures.
Approximately 8% of respondents said their employer had never paid their superannuation contributions, while 7% reported receiving incorrect amounts.
Another 6% said their employer had missed multiple contributions, and 4% reported a single missed payment. The survey also found that 18% of respondents never checked whether their employer had paid the correct superannuation amount.
ATO to strengthen monitoring of employer super compliance
The introduction of Payday Super gives the ATO more frequent contribution data, which should allow it to detect missing or incorrect payments sooner than under the previous quarterly arrangements.
The reform also provides employees with greater visibility over their retirement savings and whether employers are meeting their obligations.
The ATO’s recovery activity shows that voluntary compliance remains its principal approach, with nearly 93% of super guarantee obligations met without intervention.
For employers who repeatedly fail to correct outstanding amounts, the regulator has demonstrated its willingness to impose penalties and pursue stronger compliance action.
