Paying out more than twice the value of the Government Age Pension each year1, our superannuation (super) scheme is one of the best in the world. But we can do more to improve the system.
The Super Members Council (SMC) continues to advocate parliamentarians to enhance super based on our policy priorities.
Together, we’re on the way to achieving our three key objectives – protecting system fundamentals, improving members’ experiences and making super fairer for everyone.
1. Safeguard super system fundamentals
Protecting our super system means implementing fixes, with no change to the fundamentals.
Fix unpaid super
Around 2.8 million Australian workers are being short-changed or missing out on super payments. Most affected are low wage earners (particularly women), those in insecure work and migrant workers – costing them $5 billion a year in lost retirement savings.2
A key driver of unpaid super is that super can be paid quarterly, rather than paid with wages. And while landmark laws starting 1 July 2026 will require super to be paid on paydays, SMC has pressed the Federal Government to pass the legislation swiftly, and strengthen ATO enforcement for non-compliant employers.
The average affected worker misses out on $1,800 in super in a year, which can mean $30,000 less in retirement savings.2
2. Improve the member experience
Enhancing processes through all super phases will ultimately improve member outcomes.
Slash red tape for working retirees
Today, one in four Australians continue to perform some form of work into their 70s2, but outdated laws can cost them additional fees.
Current rules mean working retirees are forced to have two super accounts – one to accept contributions, and one to draw an income. But an easy fix is to allow super contributions from part time work to be paid straight into a retirement account.
This would remove duplicate fees, simplify super and make retirement more flexible for around 100,000 retirees.2
Expand access to affordable financial advice
As 2.5 million Australians prepare to retire in the next decade, quality financial advice is key to planning with more clarity and confidence. But research shows less than half of workers understand account-based pensions and annuities.3
While general advice is often provided at no cost by super funds, comprehensive personal advice is unaffordable for some.
SMC welcomes the Federal Government’s retirement reforms announced November 2024. This will enable more people to access quality, low-cost information, but we urge them to legislate promptly, and with robust consumer protections.
With the current vast gap in accessible advice, only 17% of Australians have sought financial advice from their super fund, but 73% would welcome it.4
Speed up death benefit payments
Member service is at the heart of what super funds do, but the law also plays a role in improving service levels.
In January 2025 following a roundtable with SMC, the Federal Government announced mandatory super service standards targeting critical areas where funds have fallen short.
The Government can also help by introducing reforms to help digitise binding death nominations, and standardising death certificate and proof of identity processes, to manage death benefit payments more efficiently.
3. Make super fairer
Reforms are needed to make our super system even fairer for all Australians.
Pay super to under 18s
Australians strongly support universal super, but an outdated exclusion still denies super to under 18s who work less than 30 hours a week.
Since nine in 10 teenagers don’t reach this threshold, around 505,000 workers miss out on $368 million in total super contributions a year.2
SMC advocates to end this age discrimination by paying super to under 18s. This would support young workers to grow their retirement savings for longer by benefiting from compound returns, and be a crucial step towards an even fairer super system.
The typical under 18 worker would have almost $2,200 in super by the age of 18, and $10,000 when they retire age 675
Lift the LISTO
The Low Income Super Tax Offset (LISTO) was designed to ensure lower-income earners received a reasonable tax concession on their super. But out-of-date rules mean these 1.2 million Australians (60% women) have missed out on a combined $2.5 billion super tax benefits since 2020.6
As women currently retire with 25% less super than men7, the Federal Government should expand eligibility for the LISTO, and lift the rebate. These changes would make super fairer for women, and strengthen retirement for more of the nation’s lowest-paid workers.
Lifting the LISTO means a female worker in the bottom 20% of wage earners could be up to $30,000 better off at retirement8
Reforming super to stop financial abuse
In 2024, SMC lobbied the Federal Government to urgently reform laws to stop family violence perpetrators claiming their victim’s super.
Currently, perpetrators can inherit their victim’s super death benefits even if they’re convicted of family violence crimes, or involved in a long history of abuse.
In April 2025, SMC welcomed the Albanese Labor Government’s commitment to close this loophole. SMC calls on all parties and independents to support this safeguard, and ensure super can’t be used as a mechanism for financial abuse.
Reform super rules for First Nations people
In Aboriginal and Torres Strait Islander communities, kinship systems structure peoples’ obligations to each other, including who’ll look after elderly members, or a child if a parent dies.
To improve equity for First Nations people, SMC advocates for recognising these structures to ensure death benefits can be paid to family by kinship, without incurring a tax penalty. Identification requirements should also be streamlined, enabling easier access to super, death benefits and insurance.
As work continues on these reforms, SMC remains a strong voice for more than 12 million everyday Australians – to steer our priorities, strengthen super and safeguard our futures.
FAQs
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Why is unpaid super still an issue?
As the laws currently stand, super is not required to be paid with wages, and can legally be paid quarterly. This makes it difficult for workers to check if they’ve been paid in full and on time, and builds up substantial super liabilities for small business at the end of each quarter.
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Why do working retirees need two accounts?
Existing rules mean you can only pay money into an accumulation account, and receive an income from a pension account. This red tape means if you want to do some work in retirement, you’ll need two accounts – increasing both super complexity and fees.
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Why are most under 18s excluded from receiving super?
The exclusion was originally intended to prevent fees and insurance premiums from eroding low-balance accounts. This is no longer an issue with fee caps and stronger protections on small balances now in place.
References:
1. Australian Prudential Regulation Authority Annual Superannuation Bulletin, June 2023
2. SMC modelling
3. Pyxis survey, 2024
4. Pyxis survey, 2024
5. SMC modelling: Assumes at least two years of work with projection calculated in today’s dollars
6. SMC analysis
7. SMC analysis
8. SMC analysis
The information set out on this website is of a general nature only and should not be taken as a complete or definitive statement about superannuation. You should not make decisions concerning your superannuation arrangements solely based on the information contained on this website which has been prepared without taking into account your objectives, financial situation or needs.