Industry Super Australia has discovered a disturbing new trend for those looking to retire. Their retirement nest egg might be missing a large chunk due to their employers withholding super payments.
While for those under 60, the loss is averaging almost $20,000 in missing super. For those over 60 that amount balloons to over $35,000! Such a devastating difference could see people leaning more on the Government pension unless something is done.
Another report released by Industry Super Australia and leading industry fund Cbus found that employers are not making correct super contributions to employees. It meant that businesses were “saving” $3.6 billion per year but costing employees over $1,400 a month in retirement.
Those over 60 and still working were found to have Supers 40-percent lower than the superfunds of workers that had their Super payments made correctly. Industry Super Australia says that these disturbing statistics are because some employers are “deliberately dodging their super obligations”.
Public affairs director Matt Linden told the Sydney Morning Herald, “It is disturbing that compliance systems are allowing it to go unchecked year after year”. He added, “It leaves government short-changed on tax revenue and affected Australians with little chance of a decent retirement.”
While the Australian Tax Office doesn’t agree on the final figure, they do concede that it is a growing problem that is being investigated by them and a Senate inquiry. The ATO have also reported on a growing trend of more than 11,000 employees dobbing in their employers for failing to pay Super. This means the days of some employers pocketing that money is coming to an end.