On the last sitting day of 2016, the matter of unpaid superannuation guarantee (SG) was referred to a Senate Economics Committee for inquiry by ACT Senator Katy Gallagher. The motion received support across the political divide and the move has also been widely welcomed by the industry.
The Australian Institute of Superannuation Trustees (AIST) CEO Tom Garcia said billions of dollars in unpaid super were quietly leaking from the super system as a result of employers either failing to meet their obligations, sham contracting or insolvency.
“Unpaid super is a problem costing billions of dollars each year which impacts both workers’ retirement outcomes and the wider economy,” Mr Garcia said.
“Many of those missing out on super are low paid workers who can’t afford to have this problem ignored.”
Mr Garcia said not all workers were aware of their rights in regards in super entitlements so government, regulators, employers, super funds and other stakeholders had an obligation to protect their interests.
Industry Super Australia is encouraging people who’ve missed out on superannuation to share their stories.
“Dodging superannuation obligations is insidious and widespread, and the impacts – on retirement incomes, business competitiveness and government revenues – are far reaching,” said Industry Super chief executive, David Whiteley.
“It’s something employees may be reluctant to speak up about for fear of rocking the boat. If you haven’t been paid your super entitlements, a written submission to this inquiry is a safe place to not only share your story but also help fix the system,” he said.
The inquiry is expected to report its findings at the end of March 2017. Submission deadlines are yet to be determined. The inquiry will consider the impact of non-payment of the Superannuation Guarantee on retirement incomes, employer competitiveness and government revenue; the accuracy of official information and data; the effectiveness of monitoring and recovery; and the appropriateness of responses to complaints and tip-offs.