INDUSTRY Super Australia (ISA) has launched an advertising campaign to raise community awareness of the extent of unpaid superannuation and the need to make changes to the law.
According to a 2018 ISA analysis of tax office data, one third of Australian workers are missing out on almost $2,000 a year in superannuation entitlements.
Other research shows persistent underpayment can result in someone having tens of thousands of dollars less superannuation than others of the same age and wage bracket at retirement.
“This money, which could be the difference between living well or just getting by in old age, should be in workers’ accounts,” ISA chief executive Bernie Dean said.
In 2017, a Senate inquiry found that, besides short-changing workers, unpaid superannuation gave some businesses an unfair advantage while driving up public pension costs.
Yet, despite the damning findings, a key recommendation to align the timing of superannuation payments with regular pay cycles has since found little traction with policy-makers.
Mr Dean said that ISA’s new advertising campaign sought to both raise consumer awareness and urge parliamentarians to fully adopt the inquiry’s recommendation.
“Currently, employers are only required to pay super into a worker’s account on a quarterly basis, so what’s on a pay slip may not reflect actual payment," Mr Dean said.
“That the onus is on workers themselves to check they’re being paid a fundamental entitlement is quite unreasonable,” he said.
“Aligning superannuation payments with wage payments would enhance transparency and streamline compliance. It’s a win for everyone”.
A Bill which extends single touch payroll obligations to all employers and may provide a foundation for further law changes for the synchronisation of superannuation payments and wages is currently awaiting further consideration by the House of Representatives.
The campaign goes live on 10 February 2019 and will run across television, social media, digital platforms and search engine marketing.
ISA’s director of marketing is Alana Burnside and the creative agency is The Shannon Company.
View the new unpaid super advertisement here.
Industry Super Australia provides policy, research and advocacy on behalf of 16 not-for-profit industry superannuation funds with around six million members.