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Missing super: employees owed $2.5bn
Around 650,000 Australian workers are being hit by non-payment of super by employers, meaning they are collectively out $2.5 billion annually, new research showed.
Research house Tria Partners found the average person loses about $3,750 a year in super, equivalent to around nine months' worth of super for someone on average weekly earnings.
At this rate, this means that for a 25-year-old, could lose $13,500 at retirement.
Head of Cbus (commissioner of the research) David Atkin said the construction industry figured significantly in the research results on non-compliance.
"Workers in the construction industry are especially vulnerable to the loss of their superannuation," Atkin said.
"Employers failing in their superannuation payment obligation is also especially dangerous in construction given the level of entries and exits of business in the industry," Atkin said.
Atkin added that many employees are not even aware of non-payment, and those that complain to the Australian Taxation Office do it too late.
"That's why, in the construction and building industry, Cbus contracts with employers to pay their employees superannuation monthly. This provides early warning allowing the fund, employers and employees to take action to remedy the problem."
The Association of Superannuation Funds of Australia (ASFA) CEO Pauline Vamos said the research should be a wake-up call for regulators and policymakers, and there should be more information sharing between the industry and the ATO to chase up super payments.
"There are a number of steps that can and should be immediately implemented including better resourcing of the ATO in this area and better communication flow between regulators and funds to ensure Australians are receiving their legal entitlements," Vamos said.
AustralianSuper and REST also commissioned the research.
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