Despite an announcement last week from the Federal Government that over $860 million in lost and forgotten super was consolidated in the last quarter of 2018, Industry Super Australia (ISA) has found that one-third of Australian workers are missing out on almost $2,000 a year in super.
In response, the group has launched an advertising campaign to raise community awareness of the extent of unpaid super and the need for legislative change in this area.
In addition to the impact unpaid super has on workers’ savings at retirement, a 2017 Senate inquiry found that unpaid super gave some businesses an unfair advantage while driving up public pension costs. ISA said, however, that a recommendation from the inquiry to align super payments with salary pay cycles had found little traction with policy makers.
“Currently, employers are only required to pay super into a worker’s account on a quarterly basis, so what’s on a pay slip may not reflect actual payment,” ISA chief executive, Bernie Dean, said.
“That the onus is on workers themselves to check they’re being paid a fundamental entitlement is quite unreasonable. Aligning superannuation payments with wage payments would enhance transparency and streamline compliance. It’s a win for everyone.”
A bill to extend single touch payroll obligations to all employers was currently awaiting consideration by the House of Representatives, and ISA believed that this could provide a foundation for further legal changes for the synchronisation of super payments.
The campaign went live yesterday and would run across television, social media, digital platforms, and search engine marketing.