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Industry Fund Services (IFS) has recovered a record-breaking $250 million in unpaid superannuation during the 2025–26 financial year, delivering super entitlements to more than 260,000 working Australians. This brings IFS’s total recoveries to $2.5 billion since the service commenced.  This comes just weeks after the introduction of Payday Super, a reform designed to improve the timeliness and visibility of superannuation payments.  

“This achievement reflects the continued dedication of our team and the trust our clients place in us. Behind every dollar is a real person's retirement, and our focus has always been on getting that money working for them as soon as possible," said Natalie Lister, IFS Executive Manager of Super Recoveries.

With Payday Super now in effect from 1 July 2026, employers are required to pay super on payday, significantly tightening compliance timelines for both superannuation funds and employers. IFS welcomes Payday Super as a significant step forward, giving funds and members greater real-time insight into missing payments, while recognising that visibility alone won't resolve every instance of unpaid super.

Payday Super applies prospectively, with existing quarterly rules continuing to govern superannuation entitlements accrued up to 30 June 2026. As a result, a significant pool of historical unpaid super remains outside the scope of the reform and will continue to require active recovery efforts. Where employers carry legacy super arrears, there is also a risk that new Payday Super contributions may be applied against older outstanding balances, potentially creating confusion about an employer’s overall superannuation compliance position, despite historical arrears remaining*.  Industry reporting also points to a challenging first year of transition for smaller employers in particular, with many needing to  update payroll systems, reporting processes and compliance frameworks, suggesting new instances of missed or late payment are still likely in the near term.**

"Payday Super is one of the most significant superannuation reforms in decades, and we strongly support it. However, it doesn't address the billions of dollars in historical unpaid super still owed to Australian workers, nor does it remove the cashflow challenges many businesses face. Employers still need to meet super obligations and additional compliance requirements while managing cashflow and waiting for customers to pay their invoices. As long as those pressures exist, there will continue to be instances of unpaid super, making recovery services an important safeguard for members' retirement savings," added Natalie Lister.

IFS continues to invest in advanced recovery technology, including intelligent automation, AI-enabled analytics and integrated data capabilities designed to improve recovery outcomes for members, reduce costs and support clients as they adapt to Payday Super.

These initiatives align with IFS' broader mission to modernise operations and empower the profit-to-member superannuation industry as it adapts to Payday Super.

*Source: Future Accounting, The Payday Super Compliance Trap Most Employers Don't See Coming" (2026) on the risk of new Payday Super payments being allocated against historical super arrears first.

** Source: Dynamic Business, reporting on the Treasury Laws Amendment (Payday Superannuation) Bill and small business transition challenges (2025); ATO, "Getting it right: compliance in the first year of Payday Super" (2026), on the ATO's practical compliance approach for the transition period.

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