Australians missing out on superannuation are losing on average $80 per fortnight

You won’t believe the sneaky tactic some employers are using to dud hardworking Australians an average of about $25,000 in superannuation payments compared to those correctly paid.

Exclusive: Hardworking Australians are being dudded of their superannuation payments and being left an average about $25,000 worse off than those who are correctly paid.

More than 2.85 million Australians have been short-changed on their compulsory superannuation entitlements equivalent to about $80 per fortnightly pay.

A new report entitled, Super Scandal, released by Industry Super Australia (ISA) today, examined 2016/17 Australian Taxation Office (ATO) statistics and found Australians are a massive $5.94 billion out of pocket of their super payments annually.

This has increased $340 million since 2013/14.

And one loophole that is causing headaches for employees who salary sacrifice and contribute extra to their super — employers are able to include this amount as part of the employee’s compulsory superannuation payments.

This is leaving them short-changed.

The compulsory superannuation guarantee rate is 9.5 per cent.

ATO statistics found Australians are a massive $5.94 billion out of pocket of their super payments annually.

ISA chief executive Bernie Dean said the gap between those being paid super properly and those not “is widening”.

“We are starting to notice these loopholes in the law that need to be closed but it’s a matter of getting people off their bottoms,” he said.

“Allowing employers to continue robbing workers of their super entitlement means these workers are going to end up worse off at retirement.”

ISA data shows the average Australian correctly paid should have $76,560 in super, compared to those underpaid, or not paid super, who have $51,054.

The difference is $24,506, or about 48 per cent.

The report also found underpayment seemed to repeatedly happen to the same workers.

The Association of Superannuation Funds of Australia’s chief executive officer, Dr Martin Fahy, said unpaid super remained a “significant issue”.

“It has a big impact on people’s retirement outcomes,” he said.

The gap between those being paid super properly and those not “is widening”.

“A recent change that requires more regular real-time reporting by superannuation funds to the Tax Office should help more people get their correct super and identify more employers who aren’t doing the right thing.”
He said more action needed to be taken to protect workers’ super.

Mr Dean urged all Australians to check their super accounts and make sure they were getting their correct entitlements.

He also said employees should ask their employer for a list of super payments into their account and match it up with their super fund.

ISA has also been strongly campaigning for employees to be paid their superannuation when they are paid their salaries, instead of holding on to employees’ payments for up to four months which they are allowed to do.

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