Illawarra workers' super balances $100m short

According to figures from Industry Super Australia (ISA) - the body that represents industry super funds - Illawarra workers lost on average $1960 in super contributions a year.

Read more: Vietnam Vets and Corrimal's RSL branch make peace in a new union

The figure was worse for those in Minister for Financial Services Stephen Jones's electorate of Whitlam, where workers were underpaid on average $2238 a year, a total of $45.1 million across the 20,150 workers in the electorate.

ISA chief executive Bernie Dean said the underpayments commonly occur as some employers only contribute a worker's superannuation entitlements quarterly, instead of paying super at the same time as wages.

"By not mandating employers pay super with wages, politicians are effectively standing in the way of millions of workers getting money they've earned and undermining their future economic security," Mr Dean said.

Younger workers and those on lower pay are more likely to have their super rorted by unscrupulous employees, however larger, well-paying organisations are not immune.

In 2017, the University of Wollongong revealed it had underpaid staff super contributions to the tune of $10 million.

The University said this was due to "longstanding anomalies" in its payroll system stretching back to July 2009 and affected 30 per cent of the 21,406 staff who worked at the university.

Whether by mistake or due to more nefarious means, across the electorates of Whitlam Cunningham and Gilmore - stretching from Helensburgh to Moruya - unpaid super totalled over $100 million in 2018-2019 and affected 55,000 workers.

Mr Jones said the Labor government would enable workers to recover unpaid super directly, rather than having to go through the Australian Tax Office, as is currently the case.

"We're going to give employees the direct right by changing the industrial relation laws and putting superannuation in the National Employment Standards," he said.

Currently, the ATO recovers about 15 per cent of unpaid super, a figure that Mr Jones said had to lift.

"We'll also be looking at areas that might ensure that the problem doesn't occur in the first place," he said. "Prevention is always better than a cure."

ISA is calling on the government to mandate employers pay super at the same time as wages, something Mr Jones said the government was "exploring".

"We're looking at all the options."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Illawarra Mercury website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.