Starting from July 1, 2026, all employers in Australia will have to pay superannuation on a fortnightly basis instead of every three months, as part of the government’s new measures for pension underpayments. The change aims to prevent workers, especially those in lower-paid, casual, and insecure jobs, from missing out on their entitled super payments. The policy is expected to boost the retirement income of the average 25-year-old income earner by an additional $6,000 or 1.5 percent. Both the government and the super industry have welcomed the move, which allows businesses ample time to adjust to the new system. In addition to the super changes, the Australian Tax Office will also receive more resources to crack down on underpayment, with Treasury and the ATO to consult with the super industry and other stakeholders in the second half of 2023.
However, Treasurer Jim Chalmers has not confirmed whether older recipients of JobSeeker support payments will receive an increase in the upcoming budget, despite reports of a proposed increase for those aged over 55 who are looking for employment. While acknowledging that people over 55, especially women, are more likely to be unemployed, Chalmers stated that the current welfare system already has different support payments for various age groups. He also mentioned that the government cannot manage all calls for more spending in the budget, particularly during a period of high inflation and persistent structural deficits.