Retirement
'Weak' super reforms won't stop dodgy employers: unions
The Australian Council of Trade Unions has expressed disbelief that proposed super reforms will stop underpayment of super, labelling the proposals “inadequate, unenthusiastic and weak”.
'Weak' super reforms won't stop dodgy employers: unions
The Australian Council of Trade Unions has expressed disbelief that proposed super reforms will stop underpayment of super, labelling the proposals “inadequate, unenthusiastic and weak”.
The ACTU’s workers’ capital organising officer, Joseph Mitchell told the economics legislation committee on Friday that the Treasury Laws Amendment (2018 Measures No.4) Bill 2018 doesn’t go far enough, using language strong enough to prompt a committee member to quip, “tell us what you really think”.
Quoting Industry Super Association (ISA) figures estimating that 2.98 million workers were short-changed in 2015-16, Mr Mitchell said the bill will be ineffectual in the face of “unscrupulous employers”.
This will be especially so in cases of underpayment of wages, cash in hand payments or rorting of the system, he added.
The committee was hearing from parties on the draft legislation, which proposes strengthened penalties against employers, extended use of single touch payroll for small businesses and boosted the powers for the Commissioner of Taxation to compel employers to cough up the unpaid super.
It also called for more regular reporting from superannuation funds.
According to the ACTU, however, these won’t go far enough.
“The penalties proposed in the bill sound exciting and tougher penalties for rogue employers are warranted but that is if the employers are caught and only if they fail to pay after they’re caught and then only at the discretion of the Commissioner,” Mr Mitchell said.
“It’s ridiculous to think that many employers may face harsher penalties as a result of this law, especially given the amnesty that has been given to employers who have ripped off their staff for more than 26 years.”
In its submission, the ACTU said underpayment is “rife” because super payments aren’t obvious to workers who also are unable to check their employers’ records of payment.
It also questioned the intelligence of granting the Commissioner extended powers without the requisite resources needed to weld them.
“After years of cuts to the resources of the ATO and the Fair Work Ombudsman, there is little to no ability for proactive action to be taken. Similarly, the ATO has thus far been unable to identify the size of the SG gap, and its current approach is reactive to cases of superannuation guarantee non-payment,” the ACTU said.
In his statement to the committee, Mr Mitchell was more blunt.
“The government is stripping it [the ATO] of its resources,” Mr Mitchell said.
“Increasing the workload without a reciprocal increase in frontline staff means this bill is little more than a piece of paper.”
ISA echoed Mr Mitchell, adding that workers denied superannuation will also be workers relying upon the age pension in the future.
“This is an issue for people denied their retirement savings; it’s an issue for government through increased pension costs; and it’s an issue for businesses put at a competitive disadvantage,” ISA public affairs director Matt Linden told the committee.
“It has taken policy-makers far too long to get on top of it,” he said.
ISA called for the bill to scrap the $450 monthly earnings threshold, arguing that it shuts workers out and specifically workers employed in the casual workforce or gig economy.
“The bill does not reflect the changing nature of work, nor does it fully harness technological improvements that have occurred since the introduction of compulsory super over a quarter of century ago,” ISA said.
According to ISA analysis of ATO data, the total amount of employer contributions underpaid rose from $5.6 billion in 2013-14 to $5.9 billion in 2015-16, with the proportion of underpaid workers rising from 32 per cent to 33.4 per cent.
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more