The New Super Rule That Will Help Your Money Grow Faster

Climate change is putting more than $1 trillion of Australians’ superannuation savings at risk. Yet the regulatory system designed to protect retirement balances may be unintentionally holding funds back from investing in the very solutions that can safeguard them.

Two new reports from the Climateworks Centre and the Monash Centre for Financial Studies suggest that superannuation funds can align with net zero without sacrificing performance, and that global pension funds are already proving it works.

A performance test designed for the past

When super is paid more often, it starts earning investment returns sooner. That means more time in the market, and more time for compound growth to do its work. As Albert Einstein famously called it, compounding is the eighth wonder of the world.

It’s not just a mathematical win however. The change also helps tackle a longstanding issue around unpaid or delayed super. According to government estimates, billions of dollars in superannuation entitlements go unpaid each year. More frequent payment schedules mean less lag time and a smaller window for errors or missed contributions. In other words: your money will actually be where it should be invested and growing.

Not directly but it can reduce what your balance is worth. If inflation sits at 4% and your super grows by 4%, your balance hasn’t actually gained purchasing power. It’s just keeping pace. Over time, if inflation outpaces investment returns, the real value of your super savings declines.

For example

Consider a 35-year-old worker earning an average salary. Under the new rules, their employer’s super contributions will start hitting their account around every fortnight instead of every three months. That difference in timing may sound minor, but over a 30-year career it can translate to tens of thousands of dollars more in retirement savings (Australian Super, 2025).

Super funds model this effect regularly, showing that more frequent compounding significantly lifts long-term balances, especially for those with 20 years or more left until retirement (News.com.au, 2025).

Protecting workers and strengthening retirement outcomes

This change is also about protecting workers and improving the integrity of Australia’s super system. Under the current quarterly payment model, it can take months for unpaid super to become visible. By the time a worker notices, their employer may have fallen behind, changed business structure, or become insolvent, making it almost impossible to recover what’s owed. Moving to a “payday super” system means super is paid alongside wages, giving employees a clear, real-time view of what’s being contributed. This transparency makes it easier to spot missed payments early, before small issues become major losses (ATO, 2025).

The reform also empowers the Australian Taxation Office (ATO) to monitor employer compliance more closely. When contributions are reported and paid more frequently, regulators can detect gaps sooner and take swift enforcement action. This helps close Australia’s estimated $3.4 billion annual superannuation gap, ensuring money owed to workers actually reaches their accounts (Treasury, 2025).

What you can do now

If you’re an employee, you don’t need to take any immediate action, but it’s a great reminder to check your super:

• Make sure contributions are being paid correctly and regularly.

• Confirm your fund and investment mix reflect your values and goals.

• If you have multiple accounts, consider consolidating to avoid unnecessary fees.

If you’re an employer, now’s the time to prepare for the change. Payroll systems and cash-flow management processes may need to be updated before the new rule begins.

References

Australian Super (2025). Compounding and how it can grow your super. https://www.australiansuper.com/superannuation/superannuation-articles/2020/09/unlocking-the-power-of-compounding

Australian Taxation Office (2025). Payday superannuation. https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation

News.com.au (2025). Simple change set to pocket Aussies $110m in a week. https://www.news.com.au/finance/superannuation/simple-change-set-to-pocket-aussies-110m-in-super-a-week/news-story/00b2f5a73ac5a8c85539e2c3f2224564

Treasury (2025). New legislation passes to ensure super is paid on time. https://ministers.treasury.gov.au/ministers/daniel-mulino-2025/media-releases/new-legislation-passes-ensure-super-paid-time

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