What to do if your super has not been paid

Two million Australians are being shortchanged on super payments, research has found. Here is how to get what you are due.

For most people the key issue with unpaid super is spotting it early. Unlike ‘lost super’ where employers have actually paid contributions, but the individual has failed to identify and collect the money, unpaid super is a much more difficult issue because the employer is the party at fault.

It is now clear from the latest research the system which we expect to deliver compulsory super is deeply flawed. Nevertheless, the best way to defend yourself is to know what you are due (9.5 per cent of your salary per annum in superannuation payments) and to check if you are getting your super paid punctually and correctly.

At minimum it should be clear at the end of each year that your total 9.5 per cent compulsory super has been paid into your account – the only acceptable reason it may not be there is that employers have up to four months to put the money through – so in the case of a financial year to the end of June, if the entire 9.5 per cent payment has not been paid by the end of October alarm bells should ring.

Officially, if your compulsory super has not been paid and you need to complain or take action your only appeal channel is the Australian Tax Office – and the figures show the ATO can be slow and regularly ineffective in this area.

On a more pragmatic level, it may well be more rewarding to simply point out to ‘the pay office’ of an employer that you are aware money due to you has not been received; at the very least this will alert the employer that the issue is a priority for you.

There are two other areas of concern which are also highlighted by this new research

1 If you are prepared to take ‘cash’ when it is clear cash is being paid to bypass tax regulation it is then very ambitious to expect the same employer to follow up on superannuation requirements
2 Where employers use the ‘loophole’ of adding your voluntary contributions to make up their compulsory contributions it is clearly a red flag. Though the research suggests this is relatively rare, until it is outlawed, the smartest thing would be to examine your payslip and if it occurs, immediately review your superannuation strategy.

SUPER: Make the most of your money

Get up to speed with what Turnbull’s new superannuation rules will mean for you, as well as hints and tips on to how to optimize your investment.

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• Could a criminal crack your super fund?

• Pension and super changes — optimise your situation
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• How new super rules will affect DIY funds’ property investment
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