If a boss doesn’t pay the Tax Office the income tax they’ve held back from your wages, the authorities come down on them quickly with severe penalties.

It’s now time for the same harsh consequences to be imposed on employers which don’t pay your compulsory superannuation contributions.

We talked about unpaid superannuation on the Sunrise breakfast program recently and we were swamped by viewers claiming they weren’t being paid their entitlement. We were stunned at the avalanche of emails. We just didn’t realise how widespread the problem is.

Every working Australian aged between 18 and 70 earning over $450 a month is entitled to receive a 9 per cent superannuation contribution from their employer. That contribution can be made as frequently as a boss wants but it must be made atleast quarterly.

It is that simple. It is your money and it’s the law.

The Tax Office quite rightly comes down harshly on employers which don’t pass on income tax collections because the ATO claims it’s not the boss’ money, it’s theirs.

The same applies to compulsory superannuation contributions. It’s not the boss’ money, it’s yours and should be passed on.

But the penalties for not paying the SGC don’t seem to be nearly as harsh as not paying income tax. It’s almost as if because the superannuation payment is yours and not the Government’s money then it’s not as important.

That has to change.

After discussing the issue we received such a wide range of complaints;

. apprentices threatened with losing their job if they complained.

. a man who hadn’t been paid superannuation for 5 years.

. casual and part-timers told they weren’t entitled to SGC even though they were earning over $450 a month.

. employers refusing to either confirm or deny the payments had been made.

If an employer is late in making your superannuation payment they are liable to pay 10 per cent interest on the outstanding amount… big deal.

According to the ATO, if you suspect your boss isn’t making the contributions, you should approach them first, then check with your superannuation fund manager and then finally complain to the Tax Office on 13 10 20.

The ATO will take details of both you and your employer, then investigate the matter. Unfortunately they can’t keep you informed of the progress of their investigation because of privacy rules. While that can be frustrating the ATO will try to provide you with more updates along the way.

But it seems the ATO is being swamped with complaints and may have a resources problem. One of the most common complaints we’ve been receiving is that once a complaint is made, you’re given a case number and then that seems to be the end of it. So many people have told us they’ve been waiting years to hear back about a complaint.

In the meantime, they’re suffering what amounts to a 9 per cent pay cut and are being put in a position which jeopardises their retirement lifestyle.

Spare a thought for those in this situation only to have their employer go broke and they never get their superannuation.

It’s just not good enough. The rules need to be tightened.

Your monthly pay slip has to show how much your boss has deducted in income tax… why can’t the superannuation contribution be listed as well?

Penalties for not passing those superannuation contributions on to your fund should be as tough as those for not passing on your income tax to the ATO. Employers must not be able to use your superannuation contributions to help their cash flow… it’s not negotiable.

The ATO must be given sufficient resources to follow up complaints quicker and bring action against boss who don’t pay.

Superannuation funds should be obliged to inform a member every quarter if they haven’t received a contribution from their boss.

There is also the silly rule that over 70 year olds are not entitled to any compulsory superannuation. Here we are, worried about the cost of an ageing population, encouraging people to work longer and then we effectively ask them to work for 9 per cent less than any other worker.

Come on. If you work, no matter the age, you should be entitled to compulsory superannuation like everyone else.

I’ll keep chasing and see whether we can get some change.

Comments  

 

+1 #12 Kellie 2012-11-01 09:03

My husband worked for his brothers company for 19years, after he decided to leave last year he found out they haven't been paying his superannuation and because they are family my husband feels like he doesn't need to do anything about it, thats a lot of years of superannuation not to be getting and I can't believe how he would just let that slide...family or not, they have done the wrong thing and need to rectify the problem and pay back my husbands money!! Very angry wife right now that will never understand how someone can let that much money go especially when you have kids and family that will eventually depend on that for retirement!!

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+2 #11 Irish@heart 2012-10-17 12:36

Quoting suaj:

hi i was speaking to my boss about super but hasn't paid super of one year and i left that job already as well now what can i do

The same thing happened to me...I have contacted the ATO and made a complaint and enquiry and I will hound them until something is done about!!!

I worked my arse off for my employer and got NO appreciation what so ever. Was already being under paid for my wages, then she with held my pay when I left and threw all my stuff out before I could collect it!!!!

I will not let her get away with it!!!!!!

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0 #10 Robert Neesam 2012-09-04 18:28

I have been retrenched and given 30 days notice.I have contacted my Superanuation fund and found that no payments have been paid for the past 12 months.

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+3 #9 Natalie 2012-07-09 16:58

OMG!!!! when will this situation end for us all. We work hard and yet find out 3 years later that the company we have worked for has liquidated under our noses and kept us all working to only find out months later that they have been spedning our Super Contributions instead of putting them away. Our payslips said we were having our super contributed but since calling the Super fund, NO payments have ever been made!!! These poeople were our friends and yet they continue to do this with their current business yet AGAIN!! The ATO are involved but when will the punishment fit the crime, its theft!!!!!!

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+2 #8 Nicole 2012-07-05 18:34

It's all good & well 4 Kochie 2say all this but 1 man isn't going to change anything.  B4 these politicians get their healthy pay rises how about they fund the ATO 4 more staff?  It's rediculous  that the govt can't change the legislation 2 make it a criminal offense 4 employers not 2 pay super & other entitlements, it should b federal law that criminal charges apply 2 them  like any other fraudster gets. Send them 2 jail, relinquish their assets or do what the ATO does 2 Uni HECS debts, take extra money out of their pay until the debt is paid off.  They should also go on a register like sex offenders do & b tracked wherever they go & not b allowed 2 leave the country.  Until this is done no 1  is safe & it will cont 2 happen to honest, hardworking, tax paying citizens. It's about time Australia looks after Australians! I feel better after that rant but it doesn't get my $15,000 back from my ex-bosses who r low life scum.

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+3 #7 ro 2012-06-13 20:14

If they own millions to the tax office they will move otherwise they told me is not their problem is mine and to get a lawyer, i got fired after 6 yrs work for demanding only my right to the 9% of supperannuation , then the Director put his son as a director and claimed to know nothing about it to deal with his 22yrs old son that knew nothing about it as well and played dumb! After 10 yrs I am still waiting for the Tax Office to do somenthing! These CRIMINALS SHOULD BE IN JAIL, THE ATO and the whole system supports their activities as they dont help victims. check this out:
http://thomsonhall.com.au/wordpress/tag/phoenix/

Ato info:
http://www.ato.gov.au/individuals/content.aspx?doc=/content/86136.htm&alias=unpaidsuper

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0 #6 suaj 2012-06-03 13:22

hi i was speaking to my boss about super but hasn't paid super of one year and i left that job already as well now what can i do

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+2 #5 Peita 2012-02-16 14:11

How often should super be paid into my super account? My pay slip represents a weekly pay of 9% super, but I haven't received this into my account, my employer advising that super will be paid quaterly - it's been 5 months.

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+5 #4 2011-09-05 17:30

The company my wife worked for had the superannuation contribution on her fortnightly pay slip, and even the name of the super fund, BUT they have never paid a cent.
If we take legal action, they are likely to shut-up shop and open again in another name.
Until the director/owner is directly, legally and personally responsible (ie their assets including super are at risk) they will get away with it.

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+2 #3 2011-07-07 16:59

I am a bookkeeper at a company. Employer has > 7 staff on payroll :-x :-x :-x for past 2 years. have not paid any super. I have informed em many times, and warned them many times, but they do not care. Everyone :-x :-x :-x :-x is scared of loosing their jobs if any one thinks of complaining. Some of them do not even know what super is and do not have super account. By asking the directors :P to comply , they get angry with me. If i inform ATO and if somehow by chance they do take action(which i do not expect) the company may suffer and employees may loose their jobs and will end up having nothing. At least what ever they are earning they are bit happy :-) :-) :-) and I still keep warning employers and they are bit scared always .But at the end of the day they are no different than mafias or drug dealers.

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