ATO helps return over $1bn in super

The Australian Taxation Office (ATO) has helped return over $1.1 billion in unpaid super to over 900,000 Australians in FY26, a significant increase from $795 million in the previous financial year.

This comes as close to $20 billion were reported lost or unclaimed from 12 months ago.

The introduction of Payday Super from 1 July 2026 has helped employers meet their super guarantee obligations, the ATO said, which requires employers to pay super on each payday.

Commenting, deputy commissioner Ben Kelly highlighted more frequent payments will provide employees with greater flexibility to manage their retirement savings.

"Employees also have greater visibility of their super entitlements, helping them better understand and track contributions throughout their working lives. We expect the shift to the Payday Super system will also help us identify any unpaid super earlier and take more timely action," he said.

"Every dollar of unpaid super is money that should be helping Australians build their retirement savings."

Early data also demonstrated the super ecosystem continued to operate efficiently despite higher demand under Payday Super. Encouragingly, the number of rejected contributions has fallen, even though volumes have increased and super funds have less time to process contributions, ATO said.

"Employers who have not yet moved to Payday Super timeframes should do so as soon as possible," Kelly said.

"We will continue to use the data that is reported to us to ensure employers meet their obligations and workers receive the super they are entitled to."

He reminded employers to get up to date with their obligations, with encouraging signs seen following prompts sent to employers to correct potential unpaid super resulting in $467 million in SGC being disclosed by employers, compared to $206 million in the prior year.

Kelly said the results demonstrate the ATO's continued focus on protecting the retirement savings of Australian workers.

"Super is there to support Australians in retirement. 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," Kelly said.

"Paying the super workers are entitled to is non-negotiable. We know the vast majority of employers do the right thing, with nearly 93% of super guarantee obligations being met without any ATO intervention.

"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 million in penalties."