Retirement
Are you getting all the super you’re entitled to?
Employees are losing $1.5 billion a year in unpaid superannuation due to a government loophole, an industry body has flagged.
Are you getting all the super you’re entitled to?
Employees are losing $1.5 billion a year in unpaid superannuation due to a government loophole, an industry body has flagged.
New research from Industry Super Australia has highlighted that between 2016 and 2017, more than 370,000 workers missed out on more than $1.5 billion in superannuation due to a loophole that allows employers to use an individual’s salary sacrificed contribution to fulfil super guarantee requirements.
The superannuation provider said the government’s amendment to the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill 2019 amends the Superannuation Guarantee (Administration) Act 1992 was a good first step but more is needed.
While the bill was designed to prevent an employer using salary sacrificing as part of the super guarantee, Industry Super has said the new legislation only helps 16.6 per cent of employers.
According to Industry Super Australia chief executive Bernie Dean, more needs to be done to protect workers that try to plan for retirement through salary sacrificing.
“More than 370,000 workers who think they’re doing the right thing and contributing to their own super are actually being double-crossed by their employers because of this loophole,” he explained.
Acknowledging that the issue with salary sacrificing is only “one part of a much bigger problem” facing Australia’s superannuation framework, Mr Dean has claimed that more needs to be done to clean up the industry as a whole.
“One in three workers are not getting paid super because dodgy bosses are hanging on to it and keeping it inside their business. It’s daylight robbery,” the chief executive exclaimed.
One proposition put forward by Industry Super as a potential solution to the problem would be the linking of superannuation with pay cycles to decrease employers’ incentives to underpay the quarterly super guarantee payment when it is due.
“The government needs to go further and stop unpaid super once and for all by making super payable on pay day,” Mr Dean said.
RELATED ARTICLES
About the author
About the author
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
