Australian Workers Losing Billions in Unpaid Super, ATO Lax on Penalties

More than 80 per cent of unpaid superannuation goes unrecovered annually, with minimal penalties for non-compliant employers.

Richard Aichinger's son, a second-year electrical apprentice, hasn't received super payments for over a year despite reporting it to the ATO.

From July 1, the superannuation guarantee rate will increase to 12 per cent, but recovery of unpaid super remains a challenge.

The ATO recovered only 17 per cent of $4.7 billion in unpaid super for 2020-21, affecting 2.8 million workers annually.

Payday super, if legislated, could improve timely super payments and compliance.

Advocates emphasize the need for stronger enforcement and proactive recovery efforts to protect workers' entitlements.

Industries like construction, hospitality, and retail are identified as high-risk for underpayment issues.

Technological solutions like Single Touch Payroll aim to enhance monitoring and ensure timely super payments.

Advocates stress the importance of addressing unpaid super issues, especially for vulnerable workers.

For more details, visit Australian Broadcasting Corporation.