Three ways your boss could be raiding your super

When the clock struck midnight on June 30, super changed a little. What this, and evolutions from other financial years, means is that your boss could now be accidentally – or cynically – suppressing your super.

Here are the three main ways they could be underpaying and how to claim what is yours.

You’re entitled to every cent of super you earn, but some bosses might be – accidentally or otherwise – paying you less.Credit: Tanya Lake

Super slug one: On July 1, the superannuation guarantee increased from 11 per cent to 11.5 per cent (on the way to an ultimate 12 per cent from July 1 next financial year).

With at least one payslip landing since the turn of the new financial year, there is an easy way to check if you’re being paid what you’re owed: simply make sure the super amount is 11.5 per cent of your gross salary for the period (your salary times by 0.115 will give you the answer).

As an aside, some employment contracts that have been made on a total-package-value or total-employment-cost basis allow employers to dock your pay for this increase. For real, they allow it.

Your salary, simply and sadly, goes down if your super goes up. Mercifully, there are few of these contracts. But that’s cold, costly comfort if you are on one.

Do what you can to safeguard your own super – and make sure your employer is paying their dues, too.

However, what no contract allows is for your employer to withhold future salary increases because of their now-higher super impost. Unfortunately, this is very difficult to prove or police. All you can do, really, is be vigilant and come up with a compelling pay case.

Super slug two: Two financial years ago, the ridiculous rule requiring you to earn $450 a month before you were eligible for super was ditched.

This was hugely welcome and something for which I had been lobbying for years – even writing an open letter in 2015 to then-PM Tony Abbott pleading for it.

You see, it disproportionately hurt women. In the thick of raising kids, or when phasing back into the workplace as they get older, women often hold part-time and casual jobs … and sometimes several.

They could easily have missed out on all super under this relic of a rule from before super was digitised, when its administration was onerous.

Are you getting what you deserve? Now, only under-18s are allowed to not be paid super – and only if they work less than 30 hours per week … yes, regardless of how much that pay is.

Super slug three: In this inflation crisis, which is affecting employers just as much as the rest of us, are you getting paid super at all?

It should be remitted at least quarterly. (In two financial years’ time, employers will have to pay it at the same time as your salary and wages, so the ATO can pick up earlier if super is being skipped.)

The next due dates for money to be paid to your fund are July 28, October 28, January 28 and then April 28. If your boss doesn’t meet these deadlines, you can report them on the ATO’s website.

There are massive fines for non-compliance, as super is a non-negotiable cost of having employees.

A super misstep: Besides how an employer might be stunting your super, you may, crazily, have lost some super … or hold multiple accounts and therefore be paying multiple fees. There is now $16 billion in lost and unclaimed super, the ATO says.

Super is deemed lost if your fund hasn’t been able to get in touch with you for just a year; equally, if you haven’t made a contribution for five years.

If they have seriously fallen out of touch with you, it can be designated ‘unclaimed’ and moved to the ATO as ‘caretaker’. The trouble is, when this happens, your money is no longer invested or making investment returns. It could effectively dwindle away, so you want to urgently reclaim it.

Luckily, this is easily done by going onto the ATO section of MyGov or calling 13 28 65 (you will need your tax file number).

While you’re there, see if your fund has made the performance grade in recent times. The personalised YourSuper comparison tool allows you to view and compare your MySuper accounts, if that’s what you have, alongside other potential MySuper products.

Do what you can to safeguard your own super – and make sure your employer is paying their dues, too.

Any and all of the above constitute a raid on your retirement. Check if you’re getting shortchanged today.

Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com. Follow Nicole on Facebook, Twitter or Instagram.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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