Australian superannuation contributions are mostly paid by post, which is losing in excess of 1 billion each year in transaction fees and late allocation. Super payments can take as much as 80 days to arrive at the beneficiary account – a period that no interest or dividends are calculated. Also, super is usually paid quarterly, as opposed to employees being paid weekly.
"I bet you'd be shocked to hear that every rollover fund is sent with a cheque and paperwork, or that every day at 11am, all the funds send a fax to fund managers saying what the inflows and outflows are. Who uses a fax these days?" Director Michael Rice said.
The government suggested that payments should be made electronically rather than by cheque. But as with all big changes, not all are happy to make the move. Employers benefit from keeping super funds longer, and Australia Post will be losing on business to the electronic payments.