EXPOSED: The $5.7 Billion Super Scandal That’s Robbing Aussies of Their Retirement Savings
- A shocking $5.7 billion is being withheld from Aussie workers in unpaid super, with some employees missing out on up to $30,000 by the time they retire.
- Current laws only require employers to pay superannuation every quarter, leaving workers in the dark about their entitlements and making it easy for unscrupulous bosses to avoid payment.
- New legislation set to be tabled in Parliament today could change all that, forcing employers to pay super at the same time as wages and giving workers a fairer deal.
Australians are being robbed of billions of dollars in unpaid superannuation, with some workers missing out on up to $30,000 by the time they retire. But new legislation set to be tabled in Parliament today could change all that, forcing employers to pay super at the same time as wages and giving workers a fairer deal.
Under current laws, employers are only required to pay superannuation every quarter, leaving workers in the dark about their entitlements and making it easy for unscrupulous bosses to avoid payment. But the new laws would require employers to pay super at the same time as wages, making it easier for workers to track their entitlements and reducing the risk of unpaid super.
“It’s really difficult for employees to keep track of whether their employers are up to date with super payments when they’re only paid quarterly, especially if their pay varies each week,” said Mary Delahunty from ASFA, a superannuation body. “It means going through months of payslips, adding up the super payments, and cross checking them against their super accounts. Often, by the time an employee discovers they’ve been underpaid, the employer is insolvent, or unreachable, making it impossible to recover what they’re owed.”
The reforms are simple and will benefit millions of Aussies who need it most, according to Super Members Council CEO Misha Schubert. “Payday super is a simple, fair and urgent reform to help ensure every dollar owed to workers makes it into their super account on time and in full,” she said. “Millions of Australians cannot afford to wait.”
The changes are expected to come into effect on July 1 next year, and could deliver an average of an extra $7700 for working Australians by retirement. That’s because being paid your super sooner helps to grow your retirement savings faster.
But the reforms are not just about giving workers a fairer deal – they’re also about tackling a major problem that’s been hidden in plain sight. Unpaid super could unfairly impact certain groups of the working population, including women and younger workers.
“Payday super is also tipped to deliver an average of an extra $7700 for working Australians by retirement because being paid your super sooner helps to grow your retirement savings faster,” said Ms Schubert.
The $5.7 billion super scandal is a ticking time bomb for Aussie workers, and it’s time for change. Will the new legislation be enough to fix the problem and give workers the fair deal they deserve?