ATO data indicates $1.4 billion shortfall in Vic super payments

More than 800,000 Victorians may be missing out on vital superannuation contributions, with a new study revealing the top Victorian suburbs that are being shorthanded. See where your suburb ranks.

Victorians are missing out on more than $1.4 billion in unpaid superannuationevery year, with more than 800,000 people across the state estimated to have missed out on entitlements.

New modelling by Industry Super Australia shows workers in Melbourne’s CBD, Cranbourne and Tarneit were the hardest hit while the state had an average shortfall of about $1750 a year.

The data has sparked a warning that unpaid super could be thenew frontier in wage theft scandals after every suburb in Victoria was impacted.

Industry Super Australia Deputy Chief Executive Matt Linden said the easiest solution was make super payable on payday.

“Across the state almost a third of Victorian workers are having their super stolen, no area is immune,” he said.

“Unpaid super blasts a hole in workers’ savings, making a huge difference to their quality of life in retirement.”

Cranbourne and Tarneit were the hardest hit suburbs, as authorities crack down on the new frontier of wage theft.

By law, entitlements can be paid quarterly instead of with pay cycles and advocates believe this is where significant amounts of money is falling through the cracks.

Unpaid super figures were sourced through Australian Taxation Office data from the 2016-17 financial year.

Analysts compared the amount of super paid out to detailed information about the number of people in each area who were entitled to payments.

Mr Linden said it was now up to authorities to call out bad behaviour and pursue the issue.

“With such little enforcement action taken against those responsible for the unpaid super scandal it is time for Victoria’s federal and state politicians to act,” he said.

“The Victorian Government can add its voice to fix this problem once and for all.”

Altona, Richmond and Narre Warren South were also among the top 10 suburbs for superannuation underpayments.

Each area is estimated to have more than 10,000 people, close to a third of workers, who were underpaid.

MORE NEWS:

QSUPER AND SUNSUPER IN MEGA MERGER TALKS

ATO RETURNS ‘LOST’ $1.38B USING NEW LAW

HOW CONTROVERSIAL SUPER RATING SYSTEM WILL WORK

It comes after wage underpayment scandals revealed thousands of Australians were being dudded by their employers.

Woolworths has revealed at least 5700 staff had been short-changed by the company while a high-profile $7.8 million backpay scandal rocked celebrity chef George Calombaris

[e-mail]

SUPER UNDERPAYMENTS BY STATE ELECTORATE 2016-17

Melbourne – 16,995 people underpaid ($32.77 million)

Cranbourne – 13,720 people underpaid ($20.16 million)

Tarneit – 13,375 people underpaid ($20.23 million)

Altona – 12,850 people underpaid ($24.23 million)

Prahran – 11,945 people underpaid ($28.78 million)

Brunswick – 11,900 people underpaid ($23.48 million)

Yuroke – 11,850 people underpaid ($16.58 million)

Richmond – 11,845 people underpaid ($28.71 million)

Narre Warren South – 11,840 people underpaid ($16.74 million)

Footscray – 11,705 people underpaid ($18.57 million)