Billions of dollars in super contributions go unpaid every year, so if you’ve never checked your super account before, now might be a good time.
Recently a girlfriend posted on social media that she was owed over $10,000 in super from a former boss, who had since shut up shop (money she may never see when she does eventually retire).
Responses from her circle of mates revealed she wasn’t alone, with one person commenting that, like her, they still hadn’t received their unpaid super money, with situations where an employer goes out of business sometimes harder to chase up.
Good news – the last analysis by the Australian Taxation Office (ATO) revealed about 95% of super contributions were being paid by employers. The bad news – that left $2.79 billion in unpaid super1!
If you want to make sure you’re getting paid what you’re owed, here’s what you need to know and what you can do if something doesn’t look right (keeping in mind, the sooner you act, the better).
Who’s most at risk?
The ATO previously indicated that about 50% of super debts it deals with relate to insolvency (in other words, companies that don’t have the cash to meet their obligations)2.
On top of that, data from the Australian Securities and Investments Commission indicated non-payment of super was more likely to happen in certain industries (hospitality, construction and retail to name a few)3.
What your employer should be paying you
If you’re earning over $450 (before tax) a month, no less than 9.5% of your before-tax salary should generally be going into your super under the Superannuation Guarantee scheme.
If you’d like help crunching the numbers, give the ATO’s Estimate my super tool a go. It can provide you with an estimate of how much super your employer should have paid into your super account.
How can I check if I’m getting paid the super I’m owed?
-
Start by looking at your payslips and know that while super contributions may be listed on your payslip, this doesn’t always mean money has been deposited into your super account.
-
With that in mind, also check your super statements, call your super fund or log into your online account to see exactly what has been paid into your super. Note, super contributions are paid quarterly (at a minimum) even if your wages are paid weekly, fortnightly or monthly, which means super contributions paid by your employer might only be deposited into your account four times a year.
What should I do if something doesn’t look right?
-
If it looks like you haven’t been paid what you should’ve, speak to the person who handles the payroll at your work, as there may be a simple explanation.
-
If you’re not satisfied with what they tell you, you can lodge an unpaid super enquiry with the ATO. You’ll need to give your personal details, including your tax file number, the period relating to your enquiry and your employer’s details. You can also call the ATO on 13 10 20.
-
It’s worth contacting your super fund too, as your employer may have a contractual arrangement with your super fund, which means your super fund may be able to follow up any unpaid super on your behalf.
Please contact us on PH: 0437 782 836if you seek further assistance.
1 Australian Taxation Office (ATO) – Superannuation guarantee gap (figures related to 2015-16)
2, 3 The Association of Superannuation Funds of Australia (ASFA) media release – Unpaid super – workers deserve better
This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, before deciding what’s right for you. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.
All information on this website is subject to change without notice. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability for any resulting loss or damage of the reader or any other person.
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page
