Aussies losing $2.75bn in super payments
The non-payment of superannuation by employers is costing Australians $2.75 billion each year in superannuation and affecting more than 650,000 workers, according to the Association of Superannuation Funds of Australia (ASFA).
Based on ASFA research, the average person affected losses nearly $4,000 per annum in superannuation or around nine months’ worth of super for someone on weekly earnings.
ASFA said the loss of superannuation impacts more heavily on younger Australians who are not only missing out on the immediate amount but also its potential growth over the years until retirement.
Chief executive of ASFA Pauline Vamos said it was vital for Australians of all ages to keep track of their super and ensure they are being paid the compulsory 9.5 per cent SG payment they are entitled to.
"Estimates show that for a 25-year-old, a one-off loss of $4,000 in super could equate to a loss of over $14,000 at retirement in today's dollars,” said Ms Vamos.
“Australians who are facing more vulnerable circumstances and broken work patterns may endure multiple losses throughout their working life.”
ASFA said if an employee believes they are not being paid the correct superannuation, ASFA said they should check their payslip to ensure it’s is 9.5 per cent of their gross ordinary time earnings or contact their super fund.
“If you have checked with your employer and super fund and are still not sure that your employer is paying you the correct superannuation contribution, you can lodge an unpaid super enquiry with the ATO,” said ASFA.