Cairns workers not paid $35 million in super

Cairns workers have missed out on a total of $35 million in super payments they earned, and the super rip-off will continue unless local politicians act.

Industry Super Australia (ISA) analysis of tax data shows 21,900 Cairns workers lost an average of $1,579 in a year.

Analysis shows that about one in three workers in the Leichardt electorate, which stretches from Cairns to Cape York, have been ripped off on their retirement contributions.

Despite the widespread local problem community awareness of unpaid super remains chronically low, especially among young workers and those on lower incomes who are most likely to be ripped off

Making matters worse 70% of workers don’t realise super can legally be paid just four times a year, not with their wages – despite what it says on payslips.

Industry Super Australia is calling on federal politicians to end the unpaid super scourge by mandating that super is paid with wages. Paying super with wages will make it much easier for workers to track when payments are made and uncover underpayments quicker, making recovery more likely.

The outdated laws and the lack of awareness amongst workers is being exploited by some unscrupulous employers who don’t pay super.

Enforcement has been sadly lacking with the ATO rarely issuing maximum penalties and only recovering 12% of the unpaid super debt annually.

An ISA report, Super Scandalous how to fix the $5 billion scourge of unpaid super and a community awareness campaign aims to help solve the problem that impacts three million people and provides practical tips on how to ensure workers are getting what they are owed.

But individuals can only do so much, it is up to politicians to fix the systemic underpayment of super by mandating all employers pay super into a workers’ account when they pay wages.

To fix the Cairns unpaid super scourge local politicians should commit to:

Ø Mandating super payment at the same time as wages.

Ø Lift enforcement activity and force the ATO to issue and publicise penalties for not paying super – so dodgy employers can see there is a cop on the beat.

Ø Empower employees and representatives to recover unpaid super debts.

Ø Extend the Fair Entitlement Guarantee so workers can recoup their savings if a company goes bust – at the moment super is not included.

Comments attributable to Industry Super Australia Chief Executive Bernie Dean:

“This is a $35 million a year rip off on almost a third Cairns workers that local politicians won’t fix.”

“Super is your money you should get it paid at the same time you get your wages. Local federal politicians get their super paid on payday; they need to mandate that local workers get it paid with wages as well.”

“Dodgy bosses getting away with daylight robbery are undercutting competitors who are doing the right thing. Paying super with wages is the only way to get workers their money and level the playing field for business.”

Table 1: Unpaid super by Queensland federal electorate

Source: ISA analysis of 2018/19 2% ATO tax file and ABS data.