Thousands of Stonnington, Boroondara workers fleeced of super

The peak Victorian superannuation body is calling on the Federal Government to take action after it was revealed more than $1.4 billion in superannuation has not been paid.

A lot of workers in Prahran are believed to have been affected. Picture: David Crosling

Workers in one Stonnington state electorate are among the most ripped off in the state when it comes to employers underpaying superannuation.

More than $1.4 billion of superannuation is missing from Victorian workers’ super accounts, according to Industry Super Australia after its research into Australian Taxation Office data, with Prahran ranked fifth on the list.

It is estimated 11,945 people have been underpaid $28.78 million, at an average of $2410.

Prahran is thought to be more susceptible as the most at risk group is for people aged under 30 and who earn less than $30,000 a year.

Casuals and part-time workers are at greater risk and hospitality is an industry which has many underpayment issues.

The nest eggs of thousands of Stonnington and Boroondara workers could be missing some money from their accounts.

Prahran has more people than the national average who work in cafes and restaurants.

Other areas to feature prominently include Hawthorn, with 9500 people underpaid $22.93m, Kew (8050 people underpaid $17.97m) and Malvern (7740 people underpaid $19.12m).

The leading electorates for Victorian workers being short-changed by their employers are Melbourne, Cranbourne and Tarneit.

Industry Super Australia deputy chief Matt Linden said the 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.”

Workers are being urged to track down millions in lost super. Picture: Cathy Adams

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.”

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.

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“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.

“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 failed to pay superannuation by the due date.