Improvements to superannuation for Queensland’s public sector employees, which were first announced in mid-2022, will commence from July 2023.

These changes, which have come about thanks to years of agitation from the QNMU, may significantly improve your super in retirement, particularly for those shift workers whose penalty rates make up a substantial portion of their income.

Read on for more details, or you can also read this information published on the Queensland Government's website.

Please note, the following information is preliminary and provided as an overview of the changes coming to your superannuation. More information will be communicated to you once the government has provided more detail on implementation and where members can go to find more information. As these changes do not take effect until mid this year, there is nothing for you to action now.

There are two main changes you should be aware of:

1 - Contributions based on ordinary time earnings

Employer contributions will be based on the federal Superannuation Guarantee Act definition of ordinary time earnings (OTE), which for many QNMU members includes shift and weekend penalties.

While non-continuous shift workers will get a significant boost to their super, continuous shift workers will be the biggest beneficiaries of this change. As continuous shift workers can earn up to 27% of their wages in shift and weekend penalties, this effectively means employer contributions to your super will be increased by that percentage.

2 - 12.75% contribution no longer dependent on your 5%

The government has also committed to paying 12.75% superannuation contributions to all employees, which will no longer be contingent on employees contributing 5% of their earnings as is the case now. This means you will have the option to either continue contributing 5% to your superannuation or reduce your contribution as you see fit (please note that changes to mandatory employee contributions will not apply to members on defined benefit).

When will these changes start?

 
Queensland Treasury has committed to having these changes implemented in time for your first full pay period in July 2023.

However, from the first full pay period after 1 April 2023, you will have the option to contribute less than 5% to your superannuation account, if you want to.

Do I need to do anything?

 
At this stage, there is nothing you need to do – and if you intend to continue contributing the same amounts to your superannuation after 1 April 2023, then you will not need to take any action at any point.

If you want to reduce the amount you contribute, however, you may do so after 1 April 2023. More information on how to do this will be provided closer to the time.

Please note, the QNMU cannot provide members with any financial advice. Members should seek their own financial advice about how these changes will impact their personal circumstances.

Lump-sum payment

 
Thanks to representation by unions, a lump sum will also be paid into your super account to make up for the fact that these changes are being delayed until July 2023, given that the state government committed to them in mid-2022.

This lump sum will be the difference between what your employer is contributing now under current super arrangements, and the new arrangements that incorporate your OTE. This will be paid no later than 1 September 2023, but Queensland Health has said they may achieve this sooner.

More information will be provided on this when it is available.

Together, we achieved this win

We know superannuation is a significant factor in gender inequality – on average, women retire with 24% less super than men. After years of calling for change, the QNMU is thrilled to have secured these structural reforms from the government, which will make a huge difference to QNMU members’ retirement savings.

Congratulations to all QNMU nurses and midwives on achieving this massive win with the state government.