With a recent joint Industry Super Australia/Cbus report finding that workers are missing out on an estimated $3.6 billion of compulsory superannuation each year – or $1,489 for the average worker affected – the Association of Superannuation Funds of Australia (ASFA) is urging Australian workers to check their Super Guarantee (SG) payments and to take action if they haven’t been paid.
“It is important to know what you are entitled to when it comes to SG so you are not missing out on a large sum in retirement,” said ASFA CEO Dr Martin Fahy.
“Estimates show that for a 25 year old, a oneoff loss of $4,000 in super could equate to a loss of more than$14,000 at retirement in today’s dollars. Australians who are facing more vulnerable circumstances and broken work patterns may endure multiple losses throughout their working life.”
How to check your superannuation
ASFA offer the following four tips for workers to step through when checking on their superannuation entitlements.
|Check your payslip||By law, your employer must include on your payslip the amount of the super contribution you’re entitled to and the name of the super fund.
Check the amount you have been paid – it should equate to 9.5% of your gross ordinary time earnings for the period of time covered by the payslip.
|Speak to your employer||If you can’t see evidence of your superannuation contribution being accounted for, check with your employer how much they have been paying and what account details they are using. Employers must make payments at least quarterly|
|Contact your super fund||Contact your super fund to see what payments have been made, and when, for what period of time.|
|Lodge an enquiry with the ATO||If you haven’t received the superannuation payments you’re entitled to, contact the Australian Taxation Office (ATO) to lodge an enquiry.|
The federal Labor party recently initiated a Senate inquiry to investigate the extent of unpaid super across Australia and what needs to be done to ensure compliance with the Superannuation Guarantee requirements. The Senate inquiry into unpaid super will focus on:
- Investigating how much superannuation is being withheld in Australia;
- Whether the existing frameworks are adequate to enforce the Superannuation Guarantee; and
- Whether the Australian Tax Office has the appropriate level of resourcing to enforce the Superannuation Guarantee.
Under the Superannuation Guarantee (SG) employers must contribute 9.5 per cent into the super account of every worker over the age of 18 earning $450 a month.