Queensland workers ‘ripped off’

$940 million in super have not been paid out to the 570,000 Queensland workers who were eligible in the 2018/2019 tax year, losing an average of $1600. This has been uncovered in a report titled ‘Super Scandalous: how to fix the $5 billion scourge of unpaid super’ by the Industry Super Australia (ISA). 

It shows that in 6 years, the cumulative unpaid super debt has reached $5.5billion. It has found that the lowest paid Queensland workers have been the most affected.

Here at Accounting Tax Solutions, we believe that this needs to be urgently issued by the ATO and by the Australian government alike. 

The report has made the comment that in order to fix the unpaid super to Queensland workers, all employers need to pay into their employee’s account the super that they are entitled to.

Because not paying their super into their wages makes it more difficult for the workers to keep a track of their money and therefore what they are entitled to can sometimes slip through the ctrack. A crack that has become $5.5billion wide. 

Politicians have known about this and the solution for a number of years yet have failed to act upon it. This unpaid super does create an unequal playing field as those employers that are doing the right thing for their employees are undercut by those who are not. 

It is difficult to sue an employer for super and the ATO can only recover 12% of underpayments annually. There are limited repercussions for bosses who are looking to cut corners in this way however 4 measures have been outlined to combat the issue. 

  1. Mandate super payments at the same time as wages. 
  2. Force ATO to issue and publicize penalties
  3. Empower employees and their representatives
  4. Extend the Fair Entitlement Guarantee so that if a company goes bust, employees can still recoup their savings. 

These measures are all considerations put to politicians to acknowledge and make changes to the unequal operations that are existing in the many workplaces throughout Queensland that are not allowing full and complete access to the super that workers are entitled to.

Most employers are doing the right thing and looking after their employees, knowing that in turn, they will look after them as a business. 

If you would like support on how to best put into practice your business operations or you are an employee unsure about what you are entitled to, please get in touch with Accounting Tax Solutions for bespoke financial advice.