Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Gig economy workers still eligible for compulsory super

cath-bowtell/gig-economy/unpaid-super/industry-fund-services/

29 March 2018
| By Anastasia Santoreneos |
image
image image
expand image

While the gig economy has caused problems for workers trying to increase their superannuation, unpaid super is not just tied to gig economy jobs, said chief executive of Industry Fund Services (IFS) Cath Bowtell.

“Gig economy” workers, who represent 1.1 million Australians working for unincorporated businesses and do not meet the traditional definition of an employee, might still be eligible for compulsory super.

Bowtell said while the gig economy would have implications on workers and Australia’s retirement system, many of those jobs could still be eligible for compulsory superannuation.

“We are kidding ourselves if we think non-payment of superannuation is confined to casual or contract labour working short engagements for multiple employers,” said Bowtell. 

Bowtell said the unpaid super problem was as much an enforcement problem as it was a law reform problem, and one that could be addressed by funds taking action as quickly as possible upon discovery of unpaid super.

The Australian Tax Office estimated underpayments of $17.1 billion in compulsory super entitlements to Australian workers between 2009 and 2015.

Bowtell said while the ATO would play a role, there was a lot more that super funds could do to chase unpaid super and educate their members and employers about their rights and obligations.

“Fund trustees are often the first to know when payments are missed, so the earlier action is taken, the more likely the debt will be recovered with a simple phone call,” she said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

5 days 19 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

4 weeks 2 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 1 day ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 1 day ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND