ATO unpaid superannuation recovery, Digi Mart USA News (Australia): The Australian Taxation Office (ATO) has ensured over $1 billion in unpaid super has been distributed to workers as a result of compliance action and employer interaction. The ATO helped return over $1.1 billion to more than 900,000 Australians in unpaid superannuation entitlements over the last financial year.
In addition, the regulator interacted with over 254,000 employers through reminders, prompts and targeted audit and review cases, raising $1.17 billion in super guarantee charge (SGC) liabilities, an increase on the $795 million raised the previous financial year.
“Super is there to support Australians in retirement. We understand how important it is that workers are not short-changed on this vital entitlement as it can have a significant impact on their future financial position,” ATO deputy commissioner Ben Kelly said.
The ATO was encouraged by an increased number of employers responding to prompts to correct potential unpaid super, with $465 million in SGC being disclosed by employers in 2025/26, compared to $206 million the previous year.
“We know the vast majority of employers do the right thing, with nearly 93 per cent of super guarantee obligations being met without any ATO intervention,” Kelly noted.
“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.”
The deputy commissioner also reminded employers of their responsibilities under the new Payday Super regime, which came into effect on 1 July, to fulfil their superannuation obligations at the same time as the organisation’s pay cycle. The measure ensures employees have greater visibility of their super entitlements and whether they are being paid correctly.
“We expect the shift to the Payday Super system will also help us identify any unpaid super earlier and take more timely action. Every dollar of unpaid super is money that should be helping Australians build their retirement savings,” Kelly indicated.
Early ATO Payday Super implementation data shows many employers are now paying superannuation more frequently.
Further, there has been a drop in the number of rejected contributions, despite an increase in the volume of payments and the short turnaround employers have, usually seven days, to ensure monies are in their employees’ super accounts.
