SUPER’S IMPROVING, BUT IT’S TIME TO STEP IT UP.

April 23, 2024 News

The SDA has been campaigning for dignity in retirement for retail, distribution and fast food workers for many years.
In 1988, we won an employer contribution for superannuation for most members starting at 1.5% and increasing to 3%. By 1 July 2025, this will increase to 12%. SDA members have also gained from the benefit of compounding interest.
Superannuation needs to get even fairer.

PAY DAY SUPERANNUATION

Following the Labor Government announcement in May 2023 of pay day superannuation, employers will be required to pay their employees’ super at the same time as their salary and wages from 1 July 2026.

It will reduce the risk of superannuation theft because the systems will be consistent, and non-payment will be noticed sooner.

This reform has now passed Parliament and will come into effect on 1 July 2026.

SUPERANNUATION IN NES

The SDA will also be able to take up members’ concerns about non-payment of super more easily, following the introduction of super as part of the National Employment Standards.

It means that the SDA can raise the matter through the fair work system, rather than the court system.

SUPERANNUATION FOR JUNIORS UNDER 18

There is more to do to make super fairer. Super is neither guaranteed to be paid to all under 18 year olds, nor is it guaranteed to be paid on a range of other wage payments, including parental leave.

A recent report showed that about 375,000 of Australia’s youngest workers are locked out of the nation’s world-class retirement system because they are not entitled to compulsory super contributions by their employer, unless they work more than 30 hours a week for the same employer.

The rule that if you’re under 18, you need to work more than 30 hours in a week to receive a superannuation contribution from your employer could ultimately cost each worker more than $10,000.

To make superannuation fairer, it needs to be paid on every dollar you earn.

Superannuation on Paid Parental Leave

The SDA welcomes the Albanese government’s announcement that it will pay superannuation on government funded paid parental leave from July 1st 2025.

As a union representing a large number of women, many of them lower paid, the SDA has been fighting for this initiative for several years.

It will improve gender equality for tens of thousands of women.

Women currently retire with far less superannuation than men and this will be another step to enable them to enjoy a secure retirement.

From July 1st 2025, the government will pay 12 percent superannuation on top of Commonwealth Paid Parental Leave to those families who take such leave to care for their newborns.

More than 180,000 women receive the payment annually.