Unpaid super issue shines light on worker exploitation
The Government’s announcement of a new reporting regime to tackle the growing ‘modern slavery’ issue caused by Australia’s $5 billion unpaid super problem is receiving support from the Australian Institute of Superannuation (AIST).
Commenting on the Government focus on modern slavery, AIST senior policy manager David Haynes said the $5 billion worth of unpaid super within Australia needed policy attention and would stem the misconception that modern slavery was reserved for offshore factory and supply chain workers.
“We know that many domestic cases of worker exploitation go under the radar, robbing workers of a fair wage and their superannuation,” he said.
“Requiring large businesses to scrutinize their supply chains will send a message to all employers that workers need to be paid correctly and this includes 9.5 per cent of their wage in superannuation.”
Haynes said AIST continued to support an anti-slavery policy regime which included penalties for non-compliance and support for new migrants.
“Many employees – particularly newly arrived foreign workers – are unsure of their entitlements or are afraid to report employer non-compliance” he said.
“It’s not just costing these workers now but for years to come as they miss out on valuable compounding interest.”
Haynes also signaled the organisation’s support for the UK anti-slavery model which includes an anti-slavery commissioner.
AUTHOR
Hope William-Smith
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
