Protecting your tomorrow, today: Super enshrined as a workplace right

Industry Super Australia

Last month, the Government passed its “Protecting Worker Entitlements Bill” through parliament. Among other things, the bill adds super to the “National Employment Standards”. This makes super a basic workplace right – bringing the law into line with community expectations.  

The change has a real and practical benefit for the one-in-four workers who miss out on super they are owed every year. Previously, only the ATO could legally follow-up the employer on a worker’s behalf, when their super guarantee was not paid according to law. This arrangement was manifestly failing to protect members’ best interests, with the ATO estimated to recover just 15% of the $5 billion-dollar unpaid super bill owed to Australian workers each year.

Now, workers, their unions, and other third parties acting on their behalf, will have the right to instigate their own legal proceedings to recoup unpaid super from employers who do the wrong thing.  

We know that unpaid super significantly impacts young employees, those in blue collar jobs, and lower-paid women. These workers, often with little spare time and relatively fewer resources to hand, may not feel empowered to recover unpaid super on their own behalf. That’s why the ability of third parties like unions and the Fair Work Ombudsman to take action on behalf of affected workers is vital.   

This reform is the latest measure in the Government’s comprehensive suite of initiatives to tackle the scourge of unpaid super, which has so far included: 
 
1. Mandating the payment of super at the same time as wages by July 1, 2026; 
2. Expanding unpaid super recovery targets for the ATO; and 
3. Indicating an intent to treat the deliberate and systemic underpayment of super as wage theft  

ISA commends the government for its decisive action, and looks forward to collaboratively pursuing other opportunities to strengthen members’ retirement outcomes – including through adding super to the Fair Entitlements Guarantee that protects workers affected by company insolvencies.