Analysis of Tax Office data undertaken by Industry Super Australia suggests that the number of workers being short-changed on super entitlements has climbed by 90,000 to a total of 2.85 million Australians.
The analysis also indicates that the cumulative savings gap between those with underpaid super in a single year and those who did receive their super payments is significant.
According to ISA, a person who did receive their full superannuation entitlement will have 50 per cent more in their super three years later, than someone who did not receive their super in a particular year.
“The average gap in savings has blown out to $24,506 for 2016–17, up from $19,709 in 2013–14 — an increase of 25 per cent in the space of just three years,” ISA said.
“It’s even worse for young workers under 25 with wages below $30,000 — those not underpaid in 2016–17 have an astonishing 81 per cent more super accumulated than those who are underpaid. This shows how much damage could be done if the government continues to fail to act.”
Industry Super Australia chief executive Bernie Dean said the figures should be a wake-up call for the major political parties.
“We are now seeing the cumulative damage the unpaid super epidemic is doing to workers’ super balances and it’s very clear,” Mr Dean said.
“Allowing employers to continue robbing workers of their super entitlement means these workers are going to end up worse off at retirement.”
Mr Dean said that both major parties should consider introducing legislation to require employers to deposit money into a workers super account at the same time as they deposit their salary into their bank account.
“Anything else is nothing more than a band-aid solution that won’t fix the problem and will only see more hardworking Australians have their super entitlements stolen by rogue employers,” he said.
Miranda this is just rubbish Read my Linkedin post (https://www.linkedin.com/feed/update/urn:li:activity:6531049345087864832) to learn why I believe that ISa’s claim that one in three workers are underpaid $5.94 billion in superannuation is fake news and unfairly labels many employers as exploiting their staff.