POWERED BY MOMENTUM MEDIA
ISA urges more frequent super payments in 2023-24 Budget
With Australian workers having lost $33 billion in super over seven years, Industry Super Australia (ISA) believes mandating more frequent super payments will solve the issue.
According to Industry Super, the current “outdated” law which allowed super payments to be paid quarterly had led to potential misalignments between one’s payslip and the actual contribution being deposited.
The report identified that in certain cases, employers could exploit these payslip gaps to hide underpayments from their staff, an issue prevalent amongst female employees and those on lower incomes.
Bernie Dean, Industry Super Australia chief executive, explained: “Each year Australian workers are missing out on billions in super that they’ve earned, which is a crushing financial blow for them and their future”.
With Australians losing an average of $4.7 billion in unpaid super annually, ISA pushed for the upcoming Federal Budget to parallel super payments with how wages were paid on a more frequent basis.
“At this Federal Budget our politicians have an opportunity to end the huge super rip off undermining the future economic security of many young women and others on lower incomes,” Dean added.
In addition to minimising the rate of unpaid super, Industry Super’s recommendation would boost the investment returns of those who were paid their super quarterly.
“Aligning payment of super and wages is the right thing to do by workers, boosts government revenue, lifts investment returns and puts all employers on a level playing field.”
Echoing HESTA’s recommendations, Industry Super additionally suggested that super should be paid on the Commonwealth Paid Parental Leave Scheme to improve retirement outcomes for women.
Dean acknowledged that the current super framework is “not perfect” and “there are long-standing issues that the government needs to address to make sure that more women, gig workers and low-income earners get a fairer go”.
Alongside the prevention of unpaid super, ISA pushed the Government to:
- Improve the Your Future, Your Super reforms;
- Implement a superannuation objective which reflects the sentiment “savings used solely as income in retirement”; and
- Extend the super guarantee’s coverage to allow gig workers to receive super.
“Out on the street, people know that super is money that you save for your retirement, and it is this simple notion that should be reflected in any laws designed to protect their financial interests,” Dean concluded.
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
