‘Short-changed twice’: the unpaid super problem hitting Australian women

‘They’re short-changed twice.’

That’s how Super Members Council CEO Misha Schubert describes the plight of Australian women who often take time out of the workforce to care for family, only to have the superannuation they do earn go missing. 

A new report from the council finds that  Australian women were underpaid a whopping $1.9 billion in a single year, and that the 1 in 4 working women affected are missing out on an average of $1,300 per year - or up to $26,000 in lost savings by the time they retire.

And this is on top of the three main contributors to the gender super gap we reported on a while back.

The main drivers of unpaid super for women

The Super Members Council (SMC) highlights a couple of key reasons why women are particularly vulnerable to unpaid super:

• Risk of losing super. Employers only have to pay super quarterly, and they also get a one month grace period on top of that. This means your money can sit with them for up to four months. If the company collapses in that time, the super you have earned might never reach your fund. Women are more at risk, since retail and hospitality, where women are over represented, see higher rates of business failure.
• Hard to know if payments are missing. With such a long lag, it is not easy to tell whether a payment is simply delayed or has been skipped. By the time the problem shows up, months may have passed, and it is up to the employee to follow it up. For women in casual or insecure jobs, the fear of losing shifts or future work can make it even harder to raise the issue.

“The numbers are stark. Working women in Australia are already retiring with a quarter less super than men, and unpaid super is making it harder to close that gap,” Schubert says.

What are the proposed fixes for unpaid super?

It’s not like unpaid super has gone unnoticed by the Australian government. In fact, there’s currently a major reform in the works called ‘payday super’.

This would require businesses to pay an employee's super at the same time as their regular wages, replacing the current quarterly system and its long delays.

While it’s officially scheduled to start in less than a year: on 1 July 2026. But with less than a year to go, the bill still hasn’t been introduced to parliament, a delay that the SMC warns could put the entire timeline at risk.

On top of that, they say paying super along with wages is not a complete fix. Here’s why:

• It doesn't stop deliberate non-compliance. While payday super makes underpayment easier to see, the SMC says a tougher referee is still needed. They are calling for the ATO to be more proactive in finding and punishing rule breakers so the system doesn't rely on workers to police it.
• It doesn't protect workers from business collapse. Payday super can't save the final payments if a business goes bust, and unpaid super isn't currently covered by the government's Fair Entitlements Guarantee (FEG) safety net. The SMC wants the FEG extended to cover super to close this loophole.

What you can do to protect yourself from unpaid super

The rules around super payments are set to change, but for now, the best way to protect your super is to keep an eye on it yourself. Here are a few simple tips:

• Check your fund. A payslip only shows what should be paid, not what has actually gone in. The only real check is looking at your fund’s transaction list and confirming the deposit has arrived.
• Watch the deadlines. Employers pay quarterly and then have a 28-day grace period. For the July to September quarter, that means the cut-off is October 28. If the money is not in your account by then, it is late.
• Raise it with payroll. If something is missing, start by asking your employer. In many cases it comes down to an administrative error that can be fixed quickly once it is picked up.
• Go to the ATO if it drags on. If an employer does not resolve the issue, the next step is to lodge a complaint with the Australian Taxation Office, which is responsible for following up unpaid contributions.

Keep an eye on fees and performance

While you're checking that your employer's payments have landed, it's also a good time to check if your fund is performing well. High fees and poor returns can erode your balance just as much as missing payments. 

If your current fund isn't meeting your goals, it might be time to see what else is out there. Start by checking out some of these attractive options below:

Aware super disclaimers:

^SuperRatings Fund Crediting Rate Survey, March 2025. Based on SR50 Growth (77-90) Index. Returns are after tax and investment management expenses but before the deduction of administration fees. Past performance is not an indicator of future performance.

^^Chant West Super Fund Fee Survey December 2024, High Growth [81-95% in growth assets] investment option index and $50,000 account balance. Fees and costs can vary from year to year. Past fees and costs are not a reliable indicator of future fees and costs. Fees and comparisons may differ for other investment options and account balances. Aware Super’s High Growth option as published in the Aware Super Future Saver PDS.

Superhero disclaimers:

#Low Fees - Findings based on Superhero’s analysis of SuperRatings’ Fee Report - October 2024, accessed 5 December 2024. Fees for Superhero Super’s Growth and High Growth investment options are in the top quartile based on Total Fees and compared against the SR50 Balanced (60-76) and SR50 High Growth (91-100) Indices respectively. Performance - Findings based on Superhero’s analysis of SuperRatings’ Fund Crediting Rate Survey – October 2024, accessed 5 December 2024. Based on Superhero Super’s Growth and High Growth options being in the top quartile for one year return across the SR50 Balanced (60-76) and SR50 High Growth (91-100) Indices respectively. Refer to the Superhero Super PDS and TMD for found at superhero.com.au/support/documents for more information.

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