ISA argues for empowerment of unions and funds

Industry superannuation funds group, Industry Super Australia (ISA) has again urged the Government to enable unions and superannuation funds to act as agents of the Australian Taxation Office (ATO) to pursue employers who have not honoured their superannuation guarantee (SG) obligations.

ISA has used a submission to the Senate Economics Legislation to argue that the ATO needs help in pursuing unpaid SG obligations and that other agencies and parties should be empowered to do so.

“Other relevant agencies such as the Fair Work Ombudsman and third parties such as unions or superannuation funds should be given greater scope to work with the ATO to recover unpaid super,” the submission said.

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“This could be achieved through permitting the ATO to delegate to an agent (such as a fund or service provider to them) to recover unpaid SG on application.

“Industry super funds engage a credit control and debt recovery provider (Industry Fund Service (IFS) Unpaid Super) to recover unpaid SG contributions for members of industry super funds,” the submission said. “IFS Unpaid Super has recovered more than $1.2 billion in SG entitlements over the past two decades.”

It said that research showed that SG non-compliance was more common in some industries than others, with low income workers in the construction, hospitality and cleaning industries most likely to miss out on superannuation.

“Some industry funds apply considerable resources to preventing and collecting unpaid SG. For example, Cbus, as the leading Industry Super Fund for the building, construction and allied industries, dedicates significant resources to a robust multi-stage arrears management process for chasing unpaid superannuation.”

In the 2019 financial year Cbus collected over $99.6 million in unpaid super for their members,” the submission said.

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Or the employee could simply email the ATO hotline instead. Would this enable the Union Super Funds to jack up their admin fees AGAIN, to justify this service?? Will their new service also be paid out of the Intrafund Advice admin fees? lol

Just in case I missed it, not everyone is in a Union.
Would you give the keys to the vault at treasury to members of the great train robbery or the CFMEU ?

In 1976 there were 2.5 million union members.
In 2016 there were 1.5 million.
During the same period, union member share of all employees(union density) has fallen from 51% to only 14%.
Younger workers are much less likely to be a union member with only 6% between the ages of 15 to 24.
When you study the significant declines in member numbers in some of the nations largest unions, it really needs to be asked why the industry super funds continue to plow money into these unions and associated Labor Party entities to the tune of tens of millions of dollars each year via the re-direction of Industry Fund directors fees.
Is that appropriate when the directors could elect to have the fund retain their fees for the members benefit, rather than commit millions and millions to these ships that have been sinking consistently over the last 43 years.?

Interested in your evidence of million and millions of dollars - got any apart from IPA propaganda?

Any chance of you balancing the debate by showing the donations from IPA members to the Coalition side? Geoff Wilson is such a donor and manages to use a Parliamentary Committee to gather paying supporters.

Will people stop calling them Union funds. LMAO

Or perhaps it would be simpler and more honest if union funds stopped trying to hide their real identity behind the deceptive marketing name of "industry funds".

They were set up by unions and are controlled by unions. Just because they have a few token employer representatives on their boards doesn't alter where the real power lies. And it's not as if you need to work in a particular "industry" to join one.

The former Liberal Premier Peter Collins and currently chairman of one of those industry funds would take exception to being regarded as a token employer representatives.
You have forgotten that it was the unions that traded wage increases for compulsory superannuation that started the rise of both retail and industry superannuation and therefore the rise of the financial advisor class. Financial advisers have done quite well out of the unions.
But you have deliberately overlooked the nub of the article - superannuation theft. Probably worse than wage theft by employers.

Yes, yet another former pollie riding on the union super gravy train. Charging admin fees for intra-fund advice (ie advice that all members pay for, yet few ever receive) is the new form of union super theft. It's time to shut this whole trillion dollar gravy train down.

Collins was and is a Liberal Party member and unlikely to be a member of a union.

Or the employers could simply honour their employees’ entitlements and/or not be thieves, thereby not unnecessarily involving ATO nor getting any union involved.

Hahahahahhahahahahaha, comrade.

Do you realise the industries with the highest level of unpaid superannuation are already union dominated, ie building, retail and hospitality. Looks like the unions have been asleep at the wheel for decades already but have been more than happy to collect their union dues. Sounds a bit like fee for no service to me.

Retail and hospitality employees are most likely to suffer wage and superannuation theft. Why is theF Federal Government not doing anything about it? It has more power than any union and has enacted laws to inhibit unions from taking industrial action of matters such as wage and superannuation theft.

I'm sure through their connections within the union movement they could arrange for some of the local bikie club enforcers to pay employers a visit to issue a friendly reminder that SG super has not been paid!

Or just members of the CFMEU.....oh, hang on.....same thing.
They love roughing people up for debts owed.
They have such a reputable brand......surely the ATO wouldn't have an issue with the CFMEU playing the role of bagman.

Or just members of the CFMEU.....oh, hang on.....same thing.
They love roughing people up for debts owed.
They have such a reputable brand......surely the ATO wouldn't have an issue with the CFMEU playing the role of bagman.

Interesting about the Board Member who called a Union Super Fund a "gutless pR***" during the RC into Trade Union Corruption in relation to CBUS leaking personal details

More about the CBUS leaking of personal details: Privacy commissioner investigates superannuation company CBUS
By Nick McKenzie Richard Baker Matthew Dunkley May 12, 2014 SMH

The Australian Privacy Commissioner is in investigating superannuation giant CBUS for a second alleged large-scale leak of workers' personal details.

Fairfax Media can reveal that privacy commissioner Timothy Pilgrim launched an investigation earlier this year into allegations that a CBUS senior employee, Steve Gaske, leaked personal information about more than 300 employees of a company subject to a construction union industrial campaign. Mr Gaske is also honourary president of the Queensland Construction Forestry Mining and Energy Union.

CBUS files reveal that an internal inquiry by the superannuation fund has already found Mr Gaske inappropriately sent personal details of more than 300 workers to a third party "without consent" and has been the subject of "remedial training.

AND we would allow these Union Funds to harrass employers??? GET REAL...

Cbus gifted $7m cash to unions
James Frost AFR 2 Jan 2019 Financial Services Writer

A former Cbus employee who was convicted of giving false and misleading evidence oversaw a sponsorship program that showered the union movement with up to $2 million a year without any formal procedures, according to a report by KPMG.

The report from May 2015 reveals that between 2010 and 2014 Cbus paid $7,038,095 to sponsoring organisations including the Australian Council of Trade Unions (ACTU), the Construction, Forestry, Mining and Energy Union (CFMEU) and the Australian Workers Union (AWU).

Former Cbus executive general manager workplace distribution Maria Butera was responsible for the management and administration of the sponsorship function at the $48 billion industry fund giant until she was sacked in 2014.

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