Employers on notice over super under Labor plan

Employers will face higher penalties for not paying superannuation under a federal Labor government.

Treasurer spokesman Chris Bowen delivers his speech on day one of the Labor Party National Conference in Adelaide. Picture: AAP

Employers face higher penalties for not paying superannuation and unions will be able to pursue legal action to retrieve outstanding super entitlements if Labor wins next year’s federal election.

But the ALP national conference did not back a union push for a timetable to fast-track increases in employer superannuation contributions, instead committing to increasing contributions to 12 per cent “as soon as practicable”.

Labor committed to setting up a new Future of Work body that would look at measures to assist displaced workers including a ­so-called robot tax on employers.

The conference watered down union proposals to mandate the appointment of employee representatives to the boards of major private sector companies. It committed Labor to examine measures that increased collaboration between employers and workers, including putting workers on boards.

In his keynote address to the conference, Opposition Leader Bill Shorten announced that a Labor government would make superannuation part of the National ­Employment Standards. “The retirement savings of Australian workers are a workplace right,’’ he said. “They deserve the same strong protections as any other workplace right.”

He said “dodgy bosses” who ­deliberately avoided paying their workers superannuation were breaking the law. “It’s theft. If I’m PM, they will be punished to the full extent of the law,’’ he said.

Currently unpaid or underpaid employer superannuation contributions are a debt owed to the Australian Taxation Office, rather than the worker. Unless there is a clause in their award or agreement, workers cannot pursue outstanding entitlements as the money is not technically owed to them.

By placing superannuation within the NES in the Fair Work Act, all employees would be able to recoup unpaid superannuation from employers through the Fair Work Commission or the Federal Court.

Labor would also strengthen the ATO compliance regime and increase penalties for employers for underpayment or non-payment of superannuation.

Employers who underpaid superannuation to their staff ­because of a false or misleading statement would face fines equal to 100 per cent of the unpaid super. Employers who failed to tell the ATO about unpaid super when asked would face fines equal to 300 per cent of the unpaid super.

According to Industry Super Australia, nearly three million Australians experienced superannuation non-payment or underpayment in 2015-16, totalling a $5.9 billion in unpaid superannuation.

Unions welcomed the commitment, saying workers who had their super stolen by their employers would be able to get their money back.

“It will … give people who’ve had their super stolen swift, low-cost, plain-language access to justice,” said ACTU assistant secretary Scott Connolly.

The construction and transport unions had sought commitments for a timetable for employer contributions to be lifted to 12 per cent and then 15 per cent by 2030.

The conference committed to ending the “freeze” on increasing employer superannuation contributions to 12 per cent “as soon as practicable”.

“Once the important goal of 12 per cent has been achieved Labor will set out the pathway to its original objective of 15 per cent.”