IFS recovers record $250m in unpaid super

Industry Fund Services (IFS) has recovered a record $250 million in unpaid superannuation in the 2025-26 financial year, bringing its total recoveries to $2.5 billion since the service commenced.

This comes just a month after the Payday Super reform went live from July 1, where employers must pay their employees' superannuation at the same time as their salary and wages.

While IFS noted the reforms are a significant step forward and help funds and members with greater real-time insight into missing payments, it also recognised visibility alone won't resolve every instance of unpaid super.

"Payday Super is one of the most significant superannuation reforms in decades, and we strongly support it," IFS executive manager of super recoveries Natalie Lister said.

"However, it doesn't address the billions of dollars in historical unpaid super still owed to Australian workers, nor does it remove the cashflow challenges many businesses face."

Payday Super applies prospectively from the new financial year, with existing quarterly rules continuing to govern superannuation entitlements accrued up to 30 June 2026. As a result, a significant pool of historical unpaid super remains outside the scope of the reform and will continue to require active recovery efforts, IFS said.

"Where employers carry legacy super arrears, there is also a risk that new Payday Super contributions may be applied against older outstanding balances, potentially creating confusion about an employer's overall superannuation compliance position, despite historical arrears remaining," IFS added.

Lister also noted employers still need to meet super obligations and additional compliance requirements while managing cashflow and waiting for customers to pay their invoices.

"As long as those pressures exist, there will continue to be instances of unpaid super, making recovery services an important safeguard for members' retirement savings," Lister said.

Super Members Council (SMC) analysis showed Australians missed out on $24.4 billion in unpaid superannuation in the five years to 2023.

"This achievement reflects the continued dedication of our team and the trust our clients place in us. Behind every dollar is a real person's retirement, and our focus has always been on getting that money working for them as soon as possible," Lister added.

IFS said it continues to invest in advanced recovery technology, including intelligent automation, AI enabled analytics and integrated data capabilities designed to improve recovery outcomes for members, reduce costs and support clients as they adapt to Payday Super.

"These initiatives align with IFS' broader mission to modernise operations and empower the profit-to-member superannuation industry as it adapts to Payday Super," IFS said.

IFS is a wholly owned subsidiary of Industry Super Holdings (ISH) and ISH is owned by a number of shareholders including some industry superannuation funds.