Greens urge Labor to criminalise super theft

Minor party said tougher measures needed to combat $3.3 billion in annual super theft.

Greens employment spokeswoman Barbara Pocock. Picture: Keryn Stevens

The Greens will push the Albanese government to criminalise superannuation theft in the same way as wage theft under changes sought to Labor’s proposed industrial relations law changes.

With the government expected to need the support of the Greens to get the Closing Loopholes Bill passed by the Senate, the minor party says toughening superannuation enforcement provisions was the best way to address an estimated $3.3bn in super theft each year.

Greens employment spokeswoman Barbara Pocock said criminalising super theft and the right for workers to disconnect from their bosses were two major commitments the Greens will pursue in negotiations with the government over the bill.

After recently siding with the Coalition and delaying passage of the industrial relations bill until at least February, ACT senator David Pocock and the Jacqui Lambie Network have called on Labor to strip out four elements and make them law from January 1.

The four areas include the proposal to simplify workers’ compensation for first responders with post-traumatic stress disorder, including firefighters, Australian Federal Police employees and ambulance officers in the commonwealth jurisdiction; and the expansion of the Asbestos Safety and Eradication Agency to eliminate silica-related diseases.

The crossbenchers also want to strip out proposals to strengthen protections against discrimination for employees subjected to family and domestic violence, and to clarify rules around small business insolvency measures.

Senator Barbara Pocock on Friday said Labor should send a strong message to companies that “if you steal super from your workers you will pay the price (and) in the most egregious cases, you will face criminal prosecution and go to jail”.

“Super theft is wage theft and the Greens want it treated as such under workplace law,” she said.

“This affects thousands of workers who are getting ripped off at a cost of at least $3.3 billion every year – 2.5 times the amount of wage theft.”

Senator Pocock said victims of superannuation theft were disproportionately young, low-paid or migrant workers, and, most commonly, worked in accommodation, food services, retail and construction.

“Many of these victims don’t have the resources or time to hire a lawyer and fight in the courts for their basic legal entitlements across various pieces of obscure legislation,” she said.

“Taking advantage of workers and stealing their retirement incomes should be criminalised just like wage theft.

According to the bill’s explanatory memorandum, a contribution to a superannuation fund for the benefit of the employee is not covered by the wage theft provisions.

“Superannuation contributions are excluded from scope as compulsory superannuation contributions are enforceable under the comprehensive superannuation framework,” it says. “Superannuation entitlements may also be enforceable as workplace entitlements under the Fair Work Act, by way of proceedings for a contravention of a civil remedy provision.”

But Senator Pocock said the Australian Taxation Office’s penalty regime for super theft was “very weakly applied”.