WORKERS MISS OUT WITH UNPAID SUPER
Young workers are urged to check they are receiving the compulsory Superannuation Guarantee from employers.
Federal member for Blair, Shayne Neumann, made the call following the release of new report into unpaid super by Industry Super Australia (ISA), which found millions of Australians are missing out on their entitlements every year.
Mr Neumann said the report confirms the need to get to the bottom of how and why this is occurring through Labor’s newly-established Senate inquiry.
Under the Superannuation Guarantee (SG) employers are legally required to contribute 9.5 per cent of wages into the account of every worker over the age of 18 earning $450 per month.
“The ISA report found about one in three SG employees are missing out on some or all of their super because their bosses aren’t doing the right thing,” Mr Neumann said.
“Unfortunately, younger workers, aged under 30 years, were the most likely to miss out on compulsory SG payments, with 37 per cent of 20-24 year-olds losing SG payments from their employer, compared with 23 per cent of 50-54 year olds.
“This mirrors the complaints I receive from constituents in Ipswich and the Somerset Region.
“Younger workers often do not understand that their employers are legally obliged to contribute 9.5 per cent of their wage into a superannuation fund.
“They are less likely to think about their retirement savings and often do not realise until they either lose their job or change employers.
“It is important that all employers do the right thing and meet their legal obligations to their workers. At the same time, it is imperative that all workers check their pay slips and their superannuation statements to ensure they are receiving the SG payments.”
The ISA report estimates that a staggering $3.6 billion per annum is not being paid by employers, with workers missing out on an average of $1,489 – the equivalent of four months of superannuation contributions.
“If this was allowed to continue, lost super earnings could reach $66 billion by 2024,” Mr Neumann said.
“This would not only put significant further demand on the age pension, but it would deny hard working Australians the superannuation payments they are legally entitled to.
“Last week Labor initiated a Senate inquiry to investigate the extent of unpaid super across Australia and what needs to be done to ensure compliance with the Superannuation Guarantee requirements. Today’s report from ISA will provide important information to support this work.”
The Senate inquiry into unpaid super will focus on:
- investigating how much superannuation is being withheld in Australia;
- whether the existing frameworks are adequate to enforce the Superannuation Guarantee; and
- whether the Australian Tax Office has the appropriate level of resourcing to enforce the Superannuation Guarantee.
“Labor is the architect of Australia's modern superannuation system and I will always work to protect it so that people living in Ipswich and the Somerset Region can live a dignified retirement supported by all the superannuation savings they are entitled to.
“While the Turnbull Government is ideologically obsessed with stripping back the rights of working people, Labor will always stand up and ensure that employees legal entitlements are paid and paid in full.”
The inquiry into unpaid super is scheduled to report in mid-March 2017.
To make a submission go to: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/SuperannuationGuarantee.
Any worker who believes they are not receiving the SG should contact the ATO. Otherwise contact Mr Neumann’s office on 3201 5300 or email Shayne.Neumann.MP@aph.gov.au.