Source: Unsplash/Matt Bennett.
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A government change requiring superannuation, or super, to be paid on payday could mean a young employee will be several thousand dollars better off by retirement.
The reform — which will not come in until July 1 2026 — will benefit the retirement incomes of millions of Australians, according to Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones.
They give the example of a 25-year-old median income earner presently receiving their super quarterly and their wages each fortnight, who could be about $6000 (or 1.5%) better off when they retire.
The ministers argue there will be benefits to bosses, as well as to the workers, in the change.
ABOUT THE AUTHOR
Michelle currently holds an academic position at the University of Canberra and is associate editor (politics) and chief political correspondent at The Conversation. She was the former editor of The Canberra Times, was political editor of The Age and has been with the Australian Financial Review and The Sydney Morning Herald.
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