Super rip-off for Australian workers

Peter Terlato 5 December 2016 NEWS

superannuation money australia calculator

Almost one-third of Aussies fleeced of super payments.

New research has found almost one third of Australian workers are being stiffed by employers sidestepping compulsory superannuation contributions, with conservative calculations valuing the missing payments at $3.6 billion per year.

Industry Super Australia, examining Australian Taxation Office (ATO) and Australian Bureau of Statistics (ABS) data, revealed these billions of dollars in avoided payments is the equivalent of $1,489 - or four months - worth of super contributions for the average affected worker.

Australia's Superannuation Guarantee (SG) requires employers to contribute 9.5% of a worker's salary into their designated superannuation account. In order to be eligible for super, the employee must be over 18 and earn at least $450 per month.

Employers have up to four months to pay super, despite wages typically being paid fortnightly or monthly.

Workers aged 20-24 (37%) were more likely to miss out on compulsory super contributions, compared with older individuals aged 50-54 (23%).

Low-income workers and those in construction, hospitality and cleaning were most likely to be duped.

Small and medium sized enterprises (SMEs) were the least likely to pay super.

Wondering how the new super rules affects you? We've evaluated all the changes to the system.

If you're looking to switch funds, consolidate your super, better manage your self-employed savings or take out income protection for your nest egg, it's best to compare options and make the right decision.

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