About one in four Australian workers are underpaid superannuation by their employers, adding up to roughly $6 billion a year. Independent reports suggest the tax office recovers only around 15 per cent of it.
Two Brisbane oral health therapists show how slow it can be. They were short about $5,000 and $3,000 in super at a dental clinic, complained to the ATO early last year, and were told in April that the ATO agreed with them. Eighteen months on, neither has seen money reach their fund or received a progress update.
The ATO declined an interview. It said it is serious about employer compliance and that tax secrecy and privacy laws limit what it can tell employees.
Industry Fund Services, which chases unpaid super for three funds, says it contacts employers early by SMS, email and phone, and escalates to a final demand and legal threat in about 10 per cent of cases. The Super Members Council says payday super, which started on 1 July, gives the ATO real-time visibility and should be backed by proactive action. It also wants unpaid super covered by the Fair Entitlements Guarantee when an employer becomes insolvent.
What it means for your money
Check your super fund account against your payslips regularly, and raise gaps with your employer early rather than waiting. If it isn’t fixed, lodge a complaint with the ATO and keep your records, because recovery can take a long time.
Source: ABC Business