How we live: more financial stress, fewer children and retiring older

The household, income and labour dynamics in Australia (HILDA) survey gives fascinating insights into Australians’ lives.

Here are some of the results from this year’s report:

Financial stress: There is plenty of evidence that many Australians are increasingly struggling to deal with the high cost of living, not least rising rents and the prices of other necessities.

  • One in eight people reported two or more indicators of financial stress in 2023 – the second-highest rate in nearly 20 years.
  • Stress indicators include not being able to pay utilities or mortgage or rent on time, skipping meals, being unable to heat the home, or having asked for financial help from friends, family or welfare organisations.

Childcare costs: The average family is spending $171 a week on childcare, or nearly $100 more than two decades ago – a 40 per cent increase.

Fewer children: Australia’s total fertility rate, or the average number of children a woman will have in her lifetime, dropped to a record low of 1.5 in 2023 – down from 2.02 in 2008.

Retiring older: In 2003, 70 per cent of women and 49 per cent of men aged 60–64 were retired. But by 2023, these figures had dropped to 40 per cent and 27 per cent, respectively, the survey showed.

Passage of payday super means more in your pocket at retirement

The passage of new legislation that requires superannuation to be paid alongside workers’ pay cycles will result in employees retiring with tens of thousands more in their super funds. 

The Albanese government’s so-called “payday super” legislation has been described as a “gamechanger” to the financial futures of millions of Australians. It has been welcomed by key stakeholders in the field, including unions and superannuation funds. 

What was happening before payday super? 

Prior to the implementation of payday super, employers were only required to pay super at least four times a year.  

For employers, this led to calculation errors and difficulty in keeping track of the correct amounts across their payroll. For employees, the lack of synchronicity with their regular pay cycles resulted in uncertainty around whether the correct amount of superannuation was being paid.  

What is super theft? 

Super theft occurs when there is an underpayment or non-payment of an employee’s mandatory superannuation entitlement by their employer. The Super Members’ Council (SMC) estimated that in 2022-2023, 3.3 million Australia’s missed out on $5.7 billion in superannuation – an average of $1730 per person. 

The impact was especially notable for women, young workers, migrant workers, and those in low-income or insecure jobs.  

So, what changes with payday super? 

From 1 July 2026, employers will be required to make superannuation contributions on pay day.  

This will make super theft more visible to employees and ensure workers benefit from compound interest sooner. 

SMC analysis showed that, with super being paid more frequently and compound interest beginning sooner, the average worker could be banking an additional $7,700 in retirement savings. 

SMC CEO Misha Schubert welcomed the legislation’s passage as a benefit for working Australians. 

“This is an historic day which will make a huge difference to help 3.3 million Australians retire with more income to cover the cost of living,” Schubert said. 

“The passage of payday super laws will help ensure every dollar owed to millions of workers makes it into their super account on time and in full.” 

Australian Council of Trade Unions (ACTU) Assistant Secretary Joseph Mitchell also lauded the incoming changes.  

“Payday super means millions of workers will retire with tens of thousands of dollars more in superannuation, not just by reducing super theft, but by earning faster and more compound interest from their super,” Mitchell added. 

Nurses and midwives’ super is under attack

The Federal Government is threatening to use the cover of coronavirus to ruin your retirement.

Since the union movement and workers won employer paid superannuation the Liberals have been out to destroy it. Union members fought for superannuation to be paid on top of our wages because all workers should retire with dignity. Compulsory, employer-paid superannuation is your passport to a dignified retirement, and it is essential that the superannuation guarantee rises to 12 per cent to get that.

Next year, on 1 July, your superannuation will go from 9.5 per cent to 10% without having to do a thing. And by 2025 it will reach 12 per cent.  This will add thousands of dollars to your super balance by retirement, which will make a huge difference to your quality of life.

Over the next couple of months, you will hear Liberal politicians, economists, and big business bleat about how super will cost wages or jobs or both. They tried this on us in the 80s and 90s when we won super – workplace by workplace, industry by industry. They tried this on us when we won paid parental leave. And they said that cutting penalty rates for workers would create jobs. But they were wrong every time.

Now they want to cut super and cancel the already legislated increase of super. And the price of them winning is your dignity in retirement.

Super is not perfect and there are things still to address. Women, at the moment, retire with 47 per cent of the superannuation of men, on average. And women over 50 are the fastest growing group of homeless people in Australia. There are real and growing barriers which women face in getting a good retirement. The $450 threshold, that superannuation isn’t paid on parental leave, and super isn’t paid to ABN workers means that women retire with less.

This Government have thrown everything and the kitchen sink at industry super funds, they directed a Productivity Commission inquiry into industry funds, asked the Royal Commission to look into industry funds and are running a parliamentary inquiry trying to tie up industry funds resources. At each test, the industry funds workers built have come out on top. Industry funds perform better and are better run than the scandal-plagued banks and for-profit super funds.

The way we fix this is by reinforcing super, not tearing it down. I haven’t met a single worker near retirement who has said they wish they had less super. Not a single worker is better off by cutting super. We need to reform super to ensure every worker retires with dignity.

Sign this petition to call on the Government to stop their plans to ruin workers’ retirements. 

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