New financial year is a good time to check super contributions

As the new financial year begins and you are busily pulling together receipts, log books and group certificates, don’t forget to check in on your compulsory super contributions. Former federal treasury Retirement Income Modelling Taskforce director and now Industry Super Australia special adviser Phil Gallagher estimates that as many as 32% of Australian workers are being short-changed by an average of $2,025 each.

Research released late last year by Industry Super Australia found that rogue employers were duping 2.4 million workers out of as much as $3.6 billion in superannuation payments annually.

The ATO says they take Superannuation Guarantee compliance seriously, with 150 dedicated staff tasked at investigating the issues. But with complaints currently at 20,000 per year and growing, it may not be enough. So what should you do if you think you are being underpaid or not paid at all?

Firstly – make sure you’re entitled to super. While most workers who work on a casual, part-time or full-time basis are usually entitled to super, there may be instances in which you are not. The ATO has a handy tool to help you determine if you’re eligible.

Secondly, make sure you are checking the right account. Many workers have multiple superannuation accounts, and sometimes are unaware they exist. Your employer may have also enrolled you into their default super fund. You can find your current super accounts via the ATO in your myGov account, or check with payroll to see which fund is listed in your details.

Then check the information on file. A simple typo may mean your money isn’t going where it’s supposed to, or anywhere at all.

If everything seems in order from your end and you suspect your employer may be dodging payments, you can lodge an enquiry with the ATO either online or on the phone. Their team will investigate and update you with the progress.

It may only be a few thousand dollars, but invested correctly, that money helps set you up for retirement. So make sure you get what you’re owed.

Michael Corcoran
General Manager Salaried Advice