Senate inquiry hears quarterly super payments causing lost entitlements
The payment of super by quarter rather than with wages could be contributing to Australian workers missing out on $3.6 billion in entitlements each year.
Industry super fund Cbus is calling for the Federal Government to better enable employers to align the payment of super entitlements with staff wages. The call comes as the Senate Economics Committee is holding hearings today into unpaid superannuation.
The submission by Cbus to the Senate Inquiry into unpaid superannuation suggests quarterly payments are a part of the issue, as there is more time between payments for something to go wrong and mistakes to be made.
Cbus chair Steve Bracks said, “The most effective solution to the growing problem of unpaid superannuation is to try and prevent it happening in the first place.”
“Paying superannuation at the same time as wages is a key part of the answer.”
“The quarterly payment cycle for superannuation can create a significant risk of non-compliance and significantly delay in detection where this occurs.”
“We appreciate that superannuation can be complex for employers and employees; however, given the tools available, we do not believe there is any compelling reason super cannot be paid at the same time as wages,” said Bracks.
In a recent survey by Cbus of its members, 40% were not confident their super has even been paid, and 14.7% had experienced an issue with unpaid super.
The inquiry comes shortly after Cbus and Industry Super Australia released a joint report last year estimating Australians were losing out on $3.6 billion in super payments each year.
If you think you have missed out on superannuation payments in the past, do a quick search to locate any missing superannuation.