Are You Being Paid Your Super?

If a boss doesn’t pay the Tax Office the income tax they’ve held back from your wages, the authorities come down on them quickly with severe penalties.

It’s now time for the same harsh consequences to be imposed on employers which don’t pay your compulsory superannuation contributions.

We talked about unpaid superannuation on the Sunrise breakfast program recently and we were swamped by viewers claiming they weren’t being paid their entitlement. We were stunned at the avalanche of emails. We just didn’t realise how widespread the problem is.

Every working Australian aged between 18 and 70 earning over $450 a month is entitled to receive a 9 per cent superannuation contribution from their employer. That contribution can be made as frequently as a boss wants but it must be made atleast quarterly.

It is that simple. It is your money and it’s the law.

The Tax Office quite rightly comes down harshly on employers which don’t pass on income tax collections because the ATO claims it’s not the boss’ money, it’s theirs.

The same applies to compulsory superannuation contributions. It’s not the boss’ money, it’s yours and should be passed on.

But the penalties for not paying the SGC don’t seem to be nearly as harsh as not paying income tax. It’s almost as if because the superannuation payment is yours and not the Government’s money then it’s not as important.

That has to change.

After discussing the issue we received such a wide range of complaints;

. apprentices threatened with losing their job if they complained.

. a man who hadn’t been paid superannuation for 5 years.

. casual and part-timers told they weren’t entitled to SGC even though they were earning over $450 a month.

. employers refusing to either confirm or deny the payments had been made.

If an employer is late in making your superannuation payment they are liable to pay 10 per cent interest on the outstanding amount… big deal.

According to the ATO, if you suspect your boss isn’t making the contributions, you should approach them first, then check with your superannuation fund manager and then finally complain to the Tax Office on 13 10 20.

The ATO will take details of both you and your employer, then investigate the matter. Unfortunately they can’t keep you informed of the progress of their investigation because of privacy rules. While that can be frustrating the ATO will try to provide you with more updates along the way.

But it seems the ATO is being swamped with complaints and may have a resources problem. One of the most common complaints we’ve been receiving is that once a complaint is made, you’re given a case number and then that seems to be the end of it. So many people have told us they’ve been waiting years to hear back about a complaint.

In the meantime, they’re suffering what amounts to a 9 per cent pay cut and are being put in a position which jeopardises their retirement lifestyle.

Spare a thought for those in this situation only to have their employer go broke and they never get their superannuation.

It’s just not good enough. The rules need to be tightened.

Your monthly pay slip has to show how much your boss has deducted in income tax… why can’t the superannuation contribution be listed as well?

Penalties for not passing those superannuation contributions on to your fund should be as tough as those for not passing on your income tax to the ATO. Employers must not be able to use your superannuation contributions to help their cash flow… it’s not negotiable.

The ATO must be given sufficient resources to follow up complaints quicker and bring action against boss who don’t pay.

Superannuation funds should be obliged to inform a member every quarter if they haven’t received a contribution from their boss.

There is also the silly rule that over 70 year olds are not entitled to any compulsory superannuation. Here we are, worried about the cost of an ageing population, encouraging people to work longer and then we effectively ask them to work for 9 per cent less than any other worker.

Come on. If you work, no matter the age, you should be entitled to compulsory superannuation like everyone else.

I’ll keep chasing and see whether we can get some change.

Comments

0 #5 Peita 2012-02-16 14:11

How often should super be paid into my super account? My pay slip represents a weekly pay of 9% super, but I haven't received this into my account, my employer advising that super will be paid quaterly - it's been 5 months.

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+3 #4 2011-09-05 17:30

The company my wife worked for had the superannuation contribution on her fortnightly pay slip, and even the name of the super fund, BUT they have never paid a cent.
If we take legal action, they are likely to shut-up shop and open again in another name.
Until the director/owner is directly, legally and personally responsible (ie their assets including super are at risk) they will get away with it.

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+1 #3 2011-07-07 16:59

I am a bookkeeper

at a company. Employer

has > 7 staff on payroll

:-x

for past 2 years. have not paid any super. I have informed em

many times, and warned them many times, but they do not care. Everyone

:-x

:-x is scared of loosing their jobs if any one thinks of complaining. Some of them do not even know what super is and do not have super account. By asking the directors

:P to comply , they get angry with me. If i inform ATO

and if somehow by chance they do take action(which i do not expect) the company may suffer and employees may loose their jobs and will end up having nothing. At least what ever they are earning they are bit happy

:-)

and I still keep warning employers and they are bit scared always

.But at the end of the day they are no different than mafias or drug dealers.

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+1 #2 2011-05-05 22:03

I have unpaid super and my former employer is a tax agent / accountant. In fact all 4 former employees of 12 months ago are all chasing unpaid super.
I have found out that the ATO will not even tell you the amount of super that they are "chasing" on your behalf. I am about to go down the legal demand / court action myself. The ATO have told me that they do not chase very hard except when the money is owed to the ATO, then they are ruthless.If the ATO will not get tough then I will.
I rang the appropriate accounting professional body and even they did not seem very interested in one of their members not paying compulsory super to their employees.

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