Unpaid super has been a long-running issue. The system allows employers to make quarterly super contributions and, with exemptions, even less frequently. Employees are left guessing when it will be paid. Consumers and super funds want the law to be changed.
Compulsory super contributions, also called the super guarantee (SG), come out of wages. When an employer fails to pay them, the employee’s retirement nest egg not only misses out on the SG but also on its earnings, leaving them with smaller balances at retirement.
The impact doesn’t end there. If your super account has been inactive for more than 16 months, or its balance falls too low, your life and disability insurance cover will be cancelled.
“Some employers are not across what their responsibilities are and are not paying on time,” says Xavier O'Halloran, director of Super Consumers Australia. “But there are also some bad actors out there, looking to avoid their responsibilities to their employees.
