Life gets busy and sometimes super can be the last thing on your mind. However, a recent investigation found it may be worth keeping a close eye on your super account.
A joint report from Industry Super Australia titled Overdue: Time for Action on Unpaid Super found that many working Australians weren’t being paid the correct Superannuation Guarantee (SG) contributions by their employers.
The main findings from the investigation were:
- 4 million Australian workers eligible for superannuation payments missed out on some or all of their compulsory super entitlements in the 2013-14 financial year;
- The total estimated amount of unpaid super was $3.6 billion in the 2013-14 financial year. This equates to nearly $1,500 a year per person or 4 months worth of contributions for the average worker per year;
- If current trends continue without action, it’s estimated that the amount of unpaid super and lost earnings will increase to $66 billion by 2024; and
- Younger workers, low income earners and workers in the construction, hospitality and cleaning industries were most likely to miss out on superannuation1.
For more information, the full report can be found on the Industry Super Australia website.
How QIEC Super works with employers
We understand that running a business can be hard work, and sometimes mistakes can happen or payments are missed by accident. That’s why QIEC Super has an arrears process in place. This process involves QIEC Super working with employers who may have missed a payment or who have underpaid SG contributions to the Fund.
Usually a follow up call or email reminder to the employer is all that’s required for any outstanding
SG contributions that need to be paid. In very rare cases, a debt collector may become involved if an employer refuses to comply.
What you can do
It’s important to remember that the majority of employers pay SG contributions correctly and on time. However, it doesn’t hurt to keep on top of your super to make sure you’re receiving the correct SG contribution amounts as any unpaid or missed contributions can add up over the years. There are a number of simple ways you can do this:
Regularly check your account using Member Online. You can see all transactions in your account, including contributions paid, at any time. If you don’t have a Member Online account, you can simply register online.
Talk to your employer to see how often they pay your super. Employers are currently required by law to pay a minimum 9.5% of an individual’s salary as SG contributions for all employees over the age of 18 who earn at least $450 a month2. Employers are also required by law to pay SG contributions at least on a quarterly basis; however they can also choose to pay monthly if they wish to do so. The amount and how often an employer must pay superannuation may be different from the above if there's an Industrial or Enterprise Bargaining Agreement (EBA) or Award. Refer to your relevant Award or Enterprise Agreement to check your entitlement.
If you think your contributions haven’t been paid correctly, you can use the ATO’s unpaid super checklist. This can give you a better understanding of what you’re owed and all the steps you can take to resolve any issues.
We’re here to help
We’re always here to help if you have any questions about your contributions or your super in general. If you need help, call us on 1300 360 507 or email us at firstname.lastname@example.org.