How to recover unpaid super

AustralianSuper

If your employer failed to pay your salary, chances are you’d notice. But what if they didn’t pay your superannuation? Every year, millions of employees miss out on unpaid super¹.

The impacts of unpaid super could come with long-term impacts – like a lower balance to live off in retirement. We take a look at the steps you can take to ascertain whether you may have unpaid super and, if so, how you might recover it.

The ongoing cost of unpaid super

Unpaid or underpaid super isn’t a one-time loss. It has compounding impacts. To understand why, first let’s look at how super works.

If you’re over 18, or working more than 30 hours a week, your employer is legally required to pay at least 11% of your wages² into your super account. That’s called the super guarantee.

The savings in your super account today have the potential to benefit from compound returns. This means any returns you earn on your balance are being reinvested, allowing your savings to keep building until you retire.

So, any money that’s not in your account doesn’t have that opportunity to grow. And if your employer isn’t paying, or is underpaying your super, you could be missing out on the potential to maximise your returns for the future.

3 steps to ensure you’re getting your super

There’re a number of ways to ensure you’re not impacted by unpaid super.

1.         Make sure it’s paid: Track deposits by regularly logging into your account via your fund’s website or app. Where possible set up payment notifications via the app to be alerted every time your super is paid.

2.         Make sure the amount is correct: Avoid being underpaid by using the Federal Government’s Estimate My Super tool.

3.         Report it: If your employer doesn’t take action, you can report unpaid super through the Australian Tax Office and Fair Work Ombudsman.

How AustralianSuper tackles unpaid super

As a fund that puts members first, AustralianSuper works with employees and employers to communicate the importance of super being paid correctly and on time. We do this by:

• Working with unions: Members can receive guidance around payments and help tracking unpaid super.
• Working with employers: AustralianSuper educates businesses about how to make payments and penalties for late payments.
• Following up on late payments: The Fund’s arrears program monitors and contacts employers who fail to pay super correctly. Employers may then get transferred over to AustralianSuper’s credit collection agency.

It’s worth noting, that although AustralianSuper takes steps aimed at having super payments paid on time, it’s still up to members to check they’re being paid right.

For next steps of helping you with arrears payments, contact your local state representative via – Helping Protect Members Super Entitlements.

^{1. Industry Super Fund – A quarter of all workers not paid $5 billion in super https://www.industrysuper.com/media/report-reveals-a-quarter-of-all-workers-not-paid-5-billion-in-super/}

^{2. ‘Ordinary time earnings’ – which are detailed here: List of payments that are ordinary time earnings | Australian Taxation Office (ato.gov.au)}

This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd. Sponsored by AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898