Qualified Automatic Contribution Arrangements (QACAs) in Australia: 2026 Guide

A Qualified Automatic Contribution Arrangement is a workplace system designed to encourage higher retirement savings by making superannuation contributions automatic and, in many cases, gradually increasing over time. The main features of a QACA typically include:

• Automatic enrolment: Employees are automatically enrolled in a superannuation plan or contribution scheme unless they actively choose to opt out.
• Escalating contributions: Contribution rates can automatically increase each year, up to a set maximum, unless the employee decides otherwise.
• Employer minimums: Employers are required to meet certain minimum contribution standards.
• Opt-out flexibility: Employees retain the right to reduce their contributions or leave the arrangement at any time.

Australia’s superannuation system already mandates employer contributions, but QACA-style features go further by making higher contributions the default and leveraging behavioural nudges to help workers save more for retirement.

In 2026, Australian superannuation funds and employers are increasingly adopting QACA-inspired practices. This shift is part of a broader effort to help Australians retire with greater financial security. Some of the notable trends and changes include:

Automatic Contribution Escalation

A growing number of super funds now offer automatic escalation options, allowing members to increase their voluntary contributions by a small percentage each year. This approach helps employees gradually boost their retirement savings without needing to make active decisions each year.

Employer-Led Initiatives

Some large employers, particularly in sectors like finance, technology, and healthcare, are piloting QACA-style schemes. These often involve setting higher default salary sacrifice rates for new employees, with the option for individuals to adjust or opt out if needed.

Communication and Compliance

Regulators have emphasised the importance of clear communication around automatic contribution arrangements. Employers and super funds are expected to ensure that employees understand their rights to opt out or change their contribution rates, and that any automatic increases are transparent and easy to manage.

Addressing the Gender Super Gap

QACA-style models are also being explored as a way to help close the gender gap in superannuation balances. Some employers are trialling higher default contributions for employees returning from parental leave, aiming to support those who may have missed out on super contributions during career breaks.

These developments reflect a broader policy goal: encouraging Australians to save more for retirement, above and beyond the minimum required by law, and making it easier for people to build long-term financial security.

To illustrate how QACA-style arrangements function, consider a typical scenario:

• A new employee joins a company and is automatically enrolled in a superannuation plan with a default salary sacrifice contribution rate (for example, 5% of their salary).
• Each year, the contribution rate increases automatically by a set amount (such as 0.5% or 1%), up to a predetermined cap, unless the employee chooses to opt out or select a different rate.
• The employee receives regular communications explaining their options, including how to adjust or stop the automatic increases if their circumstances change.

This approach relies on the power of inertia—many people stick with the default settings, leading to higher overall savings over time. Super funds are also using digital tools, such as mobile app notifications and annual reminders, to prompt members to review and consider increasing their contributions.

For employers, the growing adoption of QACA-style features means it’s important to:

• Review superannuation contribution policies: Ensure that any automatic escalation features are clearly explained and compliant with current regulations.
• Communicate clearly: Make sure employees understand their rights, including how to opt out or adjust their contribution rates.
• Engage with super fund providers: Work with your fund to implement best practices and support employees in making informed decisions about their retirement savings.

Employers should also consider the needs of different employee groups, such as those returning from parental leave or those with varying financial circumstances, to ensure that contribution arrangements are fair and flexible.

If you’re an employee, it’s worth taking the time to:

• Check your payslip and superannuation statement: Look for any new default contribution rates or automatic escalation features that may have been introduced.
• Consider your long-term goals: Think about the impact of higher contributions on your retirement savings, and whether the default settings suit your financial situation.
• Know your options: Remember that you can usually adjust your contribution rate or opt out of automatic increases if your circumstances change.

For those concerned about cash flow, most QACA-style arrangements are designed to be flexible. You can typically change your contribution rate at any time, making it easier to balance saving for retirement with your current financial needs.

QACAs represent a shift in how Australians approach retirement savings, making higher contributions the default rather than the exception. As more employers and super funds adopt these features, and as digital tools make it easier to manage contributions, workers may find it simpler to build stronger super balances over time.

While the specifics of QACA-style arrangements can vary between employers and funds, the underlying goal remains the same: to help Australians retire with greater financial security. By understanding how these arrangements work and taking an active role in your superannuation decisions, you can make the most of the opportunities available in 2026 and beyond.