Unpaid super recovery

Cbus

How one Industry Super Fund is helping members recover their unpaid super 

In 2021, it was estimated that Australian workers were owed $5 billion in unpaid super.^ That is a huge collective loss of potential retirement savings.  

A 21-year-old worker with an annual salary of $50,000, who had superannuation contributions persistently underpaid by their employer throughout their career could lose close to $308,000 by the time they retire.# 

Why super is often unpaid 

There are several reasons why employers might not meet their superannuation guarantee (SG) obligations, including poor cash flow management, simply choosing not to pay, insolvency or the business operator abandoning a company to avoid paying creditors.^ 

Independent research commissioned by Cbus Super tells us that people working in building and construction, and adjacent industries have a one in three chance of being underpaid super.^^ Young workers, and those on low wages or working in hospitality and accommodation, are also most likely to be underpaid super.^ 

Cbus, as the industry fund for building and construction workers have made addressing the issue of unpaid super a priority because we know a significant proportion of our membership are at risk of being impacted by it. 

Over the last five years, Cbus has recovered $471 million in unpaid super on behalf our members and last financial year we recovered $106.6 million in unpaid super through our arrears program. 

Our advocacy in relation to unpaid super aims to raise awareness of the scale of the problem and to persuade the Government and other parliamentarians to take action to tackle it. Cbus welcomes the recent announcement by the Federal Government that the Budget will include measures to legislate the payment of super on pay day.  

Cbus is the only super fund to have made a submission to the Senate Education and Employment Committee’s inquiry into the Fair Work Legislation Amendment (Protecting Worker Entitlements) Bill 2023 which would see super included in the National Employment Standards.  

Read more about Cbus work to ensure our members’ super is being paid here.

#Modelling based on a worker entering the superannuation system at age 21 and retiring at age 67 with an annual salary of $50,000 who had superannuation contributions persistently underpaid (33.56 per cent less in superannuation than what was owed) by their employer.^{^} Source: Industry Super Australia, Unpaid Super Report-2021^{^^}Source :Cbus submission, Senate Education and Employment Committee inquiry into the Fair Work Legislation Amendment (Protecting Worker Entitlements) Bill 2023 *Source: Cbus Media Release, Cbus Super welcomes unpaid super measures to stop workers losing out on returns, 2 May 2023.

This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Also read the relevant Target Market Determination at cbussuper.com.au/tmd. Cbus Super). United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for the Construction and Building Unions Superannuation Fund ABN 75 493 363 262 (Cbus and/or Cbus Super).