ISA has recently released a new report on the ongoing problem of unpaid super and solutions to fix it. The report reveals 3 million Australian workers are unpaid super every year, to the tune of almost $5 billion. The heart-wrenching stories of workers unpaid their super are the focus of extensive media reporting as shown here, along with ISA’s analysis showing the breathtaking extent of this continuing national problem. Unpaid super is depleting the retirement savings of millions of hard-working Australians – and not enough is being done to fix it. A summary of the report’s major findings and recommendations are below.
The report recommends:
- Mandate super payment at the same time as wages
- Lift enforcement activity and force the ATO to issue and publicise penalties for not paying super – so employers can see there is a cop on the beat.
- Facilitate other actors to recover unpaid super debts for workers and add super to the National Employment Standards so the Fair Work Ombudsman can step in
- Extend the Fair Entitlement Guarantee so workers can recoup their savings in a company goes bust- at the moment super is not included.