More than a quarter of Queensland’s workers have been ripped off on super contributions they earned, and the state’s super rip-off will continue unless federal politicians act.
Industry Super Australia (ISA) analysis of tax data shows more than 570,000 Queensland workers were not paid $940 million in super losing an average of $1,600 in 2018/19. Those dudded can end up retiring with up to $60,000 less.
In six years, Queensland’s cumulative unpaid super debt has climbed to an eyewatering $5.5 billion. Young Queensland workers and those on lower incomes are most likely to be underpaid, and super rip-offs are sadly widespread in blue collar jobs and in hospitality.
An ISA report, Super Scandalous how to fix the $5 billion scourge of unpaid super lax enforcement and loose laws that allows super to be paid quarterly into the workers’ fund have been exploited by some dodgy Queensland bosses to rip workers off.
The report’s key recommendation for fixing the unpaid super scourge in Queensland is to mandate all employers pay super into a workers’ account when wages are paid.
Not paying super with wages makes it difficult for workers to keep track of their money and allows payments to fall through the crack. Federal politicians have known about this solution for years but have failed to act.
Unpaid super creates an unequal playing field, as the employers doing the right thing are undercut by competitors who are ripping their workers off.
Workers must largely rely on the Australian Tax Office to recover their money as it is difficult to sue for super, but it only recovers a dismal 12% of underpayments annually and rarely punishes dodgy bosses.
If the ATO is unwilling or unable to recover Queensland workers’ savings the law should be changed so that employees, the Fair Work Ombudsman, and others acting on behalf of workers can.
To fix Queensland’s $1 billion unpaid super scourge 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 an almost $1 billion a year rip off on a quarter of Queensland’s workers that politicians won’t fix.”
“Super is your money, it should be paid at the same time as wages. By not mandating the payment of super with wages, politicians are stopping millions getting what they are owed.”
“Our federal politicians get their super paid on payday, so should all Queensland workers.”
“Most employers are doing the right thing, but they are being undercut by competitors who are getting away with daylight robbery. Paying super with wages is the only way to get workers their money and level the playing field for business.”
Table 1: Unpaid super by Queensland federal electorate
Electorate | Persons | Percentage of electorate | Average underpaid | Total ($m) |
Griffith | 22,950 | 28% | $1,627 | $37.3 |
Brisbane | 22,850 | 25% | $1,597 | $36.5 |
Fisher | 19,950 | 30% | $1,793 | $35.8 |
Lilley | 20,650 | 29% | $1,728 | $35.7 |
Moncrieff | 21,650 | 30% | $1,647 | $35.7 |
Fadden | 21,000 | 30% | $1,680 | $35.3 |
McPherson | 19,500 | 29% | $1,795 | $35.0 |
Leichhardt | 21,900 | 30% | $1,579 | $34.6 |
Rankin | 18,900 | 27% | $1,799 | $34.0 |
Oxley | 21,250 | 28% | $1,579 | $33.5 |
Ryan | 21,000 | 29% | $1,582 | $33.2 |
Wright | 18,900 | 30% | $1,739 | $32.9 |
Moreton | 20,100 | 26% | $1,629 | $32.7 |
Dickson | 19,850 | 29% | $1,643 | $32.6 |
Bowman | 19,050 | 28% | $1,711 | $32.6 |
Fairfax | 19,450 | 29% | $1,638 | $31.9 |
Forde | 21,550 | 30% | $1,465 | $31.6 |
Capricornia | 17,500 | 30% | $1,744 | $30.5 |
Kennedy | 16,800 | 27% | $1,792 | $30.1 |
Groom | 16,900 | 29% | $1,776 | $30.0 |
Herbert | 18,600 | 28% | $1,608 | $29.9 |
Longman | 19,000 | 29% | $1,475 | $28.0 |
Petrie | 17,700 | 24% | $1,583 | $28.0 |
Blair | 18,100 | 28% | $1,506 | $27.3 |
Hinkler | 15,750 | 32% | $1,661 | $26.2 |
Wide Bay | 15,150 | 29% | $1,722 | $26.1 |
Flynn | 16,700 | 29% | $1,561 | $26.1 |
Dawson | 18,600 | 28% | $1,392 | $25.9 |
Maranoa | 15,200 | 27% | $1,683 | $25.6 |
Bonner | 17,750 | 26% | $1,408 | $25.0 |
State Total | 574,250 | 28% | $1,636 | $939.5 |
Source: ISA analysis of 2018
Source: ISA analysis of 2018-19 2% ATO tax file and ABS data.
