[Australia] Young workers missing out on millions in unpaid superannuation

In Australia, thousands of young workers have missed out on superannuation entitlements due to employers who forgot or refused to pay them, collectively costing millions in retirement savings, news.com.au reports.

New data released by Cbus Superannuation revealed that nearly 30,000 construction workers under 35 had lost or had delayed super payments last financial year.

The figures were reportedly released amid warnings that just 100 days remain for employers to prepare for sweeping changes that will force them to pay super on payday or attract large fines.

From July 1, employers will have to pay superannuation to their staff at the same time they pay any other salary or wage. Before the change, superannuation only needed to be paid four times a year.

According to Treasury estimates, this is the equivalent of receiving an extra $6000 in today’s dollars for the average 25-year-old worker’s retirement balance and will make them around 1.5 per cent better off when they retire.

Tom Garcia - Cbus Super chief member officer - reportedly said the shift to payday super would ensure super is paid on time, protecting worker entitlements and leaving no room for employers trying to avoid it.

“Whether we’re collecting late contributions or chasing the small number of dodgy bosses who simply weren’t going to pay, these young workers are the ones paying the price,” he said.

“If it isn’t in their accounts generating compound returns, they’re losing out in retirement.”

Mr Garcia added that it was unfortunately common for workers in the building and construction industry to miss out on superannuation entitlements.

“These changes mean super contributions will be in accounts on payday and generating returns to support a more comfortable retirement,” he said.

“It will make it easier for workers to keep track of super payments and play a key role in lessening the unpaid super scourge.”

Source: news.com.au

(Quotes via original reporting)

In Australia, thousands of young workers have missed out on superannuation entitlements due to employers who forgot or refused to pay them, collectively costing millions in retirement savings, news.com.au reports.

New data released by Cbus Superannuation revealed that nearly 30,000 construction workers under 35 had lost or had delayed super payments last financial year.

The figures were reportedly released amid warnings that just 100 days remain for employers to prepare for sweeping changes that will force them to pay super on payday or attract large fines.

From July 1, employers will have to pay superannuation to their staff at the same time they pay any other salary or wage. Before the change, superannuation only needed to be paid four times a year.

According to Treasury estimates, this is the equivalent of receiving an extra $6000 in today’s dollars for the average 25-year-old worker’s retirement balance and will make them around 1.5 per cent better off when they retire.

Tom Garcia - Cbus Super chief member officer - reportedly said the shift to payday super would ensure super is paid on time, protecting worker entitlements and leaving no room for employers trying to avoid it.

“Whether we’re collecting late contributions or chasing the small number of dodgy bosses who simply weren’t going to pay, these young workers are the ones paying the price,” he said.

“If it isn’t in their accounts generating compound returns, they’re losing out in retirement.”

Mr Garcia added that it was unfortunately common for workers in the building and construction industry to miss out on superannuation entitlements.

“These changes mean super contributions will be in accounts on payday and generating returns to support a more comfortable retirement,” he said.

“It will make it easier for workers to keep track of super payments and play a key role in lessening the unpaid super scourge.”

Source: news.com.au

(Quotes via original reporting)