No time to lose on unpaid superannuation
3 May 2017
Cbus welcomes a Senate Report recommending decisive and comprehensive action by the Government to address the billions of dollars in non-payment of workers’ superannuation entitlements.
Cbus CEO David Atkin said the Economics Committee’s report, Superbad – Wage theft and non-compliance of the Superannuation Guarantee contains a range of sensible and practical recommendations that can make a real difference for workers.
“We are pleased the Committee has agreed with Cbus and recommended the Superannuation Guarantee (SG) be paid at least monthly and preferably in line with regular pay cycles. This will greatly aid early detection and recovery of unpaid superannuation,” Mr Atkin said.
“The most effective solution to the growing problem of unpaid superannuation is to try and prevent it happening in the first place.
“Paying superannuation at the same time as wages is a key part of the answer.
“It’s confusing for many workers who see superannuation on their payslip and assume it’s been paid when in fact that’s not always the case.”
Cbus also welcomed the Committee’s recommendation that superannuation funds seeking default status must have a rigorous arrears collection process to recover unpaid super for members. This is an important consumer protection measure which should be addressed in the current Productivity Commission review.1
“The building and construction industry has some of the highest rates of non-payment of super and Cbus is proud of its strong record in helping to ensure workers’ get their entitlements.”
Mr Atkin said the report should not be a lost opportunity and urged the Government to take concrete steps to improve compliance including in next week’s Budget.
“The impact of missing superannuation can be dramatic on individuals and the wider community with lost tax revenue and increased reliance on the age pension. We all lose from unpaid super.”
Media Contact: Carla De Campo - 0410 579 575
1On 3 May, the Productivity Commission is holding public hearings on Default Superannuation in Melbourne.