Cranbourne and Tarneit hardest hit by $1.4 billion in unpaid Victorian superannuation
More than 800,000 Victorian workers weren’t paid their superannuation entitlements in 2016/17 — a staggering $1.4 billion shortfall — with new research from the peak industry body revealing the two western suburbs hardest hit.
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Victorian workers are being short-changed by their employers, with more than $1.4 billion in superannuation missing from hardworking employee’s super accounts.
Industry Super Australia research into Australian Taxation Office data showed more than 800,000 people had not received their entitlements in 2016-17, which equates to an average of $1750 per person, a year.
According to the data the electorate of Melbourne had the most workers — 16,995 — underpaid by $32.77 million.
In the suburbs, 13,720 Carnbourne worked have been dudded out of $20.16 million, while 13,375 people in Tarneit are missing $20.23 million.
In Mulgrave 8140 workers were underpaid by more than $62 million.
Industry Super Australia deputy chief Matt Linden said this money could mean the difference between a dignified retirement and just scraping by.
Mr Linden said the only way to stop the “$1.4 billion rip off” was for the Federal Government to legislate for superannuation to be paid at the same time as wages.
“Across the state almost a third of Victorian workers are having their super stolen, no area is immune,” Mr Linden said.
“Unpaid super blasts a hole in workers’ savings, making a huge difference to their quality of life in retirement.”
A State Government spokesperson, who refused to be named, said too many Victorians were being ripped off by “unscrupulous” employers who withhold wages, superannuation or other entitlements.
“It’s pretty simple, superannuation theft is wage theft — and it has to end,” the spokesperson said.
“We’ve already promised to introduce landmark laws that make wage theft a crime, but Canberra has a role to play here too, by making superannuation payable on payday.”
The spokesperson said Treasurer Tim Pallas would be raising the matter with his federal colleagues.
An Australian Taxation Office spokesperson, who also did not want to be named, said the department took any non-payment of superannuation payments very seriously.
“In 2018-19, the ATO contacted more than 22,000 employers as a result of reviews or audits, and raised assessments for over $805 million,” the spokesperson said.
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“We will pursue recovery of any outstanding debt, aiming to collect and distribute unpaid super and interest to employees as soon as possible.”
They said there were a range of penalties on top of the charge employers face if they fail to pay superannuation by the due date.
If an employer lodges their superannuation statement late, they could be up for a substantial fine, they said.
Find out more here.