News

Unpaid super destroying Murray Plains’ workers’ retirement dreams

By Ivy Jensen

MORE than 7000 workers in the Murray Plains electorate have been robbed of almost $9 million in unpaid superannuation.

Industry Super Australia's new analysis of Australian Tax Office data from 2016-17 has revealed 7360 workers were owed $8.98 million in unpaid super, which could have a devastating effect on their retirement savings.

They are among more than 800,000 Victorians — almost one in three workers — who have not received their legal superannuation entitlements.

An average worker in the Murray Plains electorate is owed $1220 in unpaid super a year.

Industry Super Australia chief executive Bernie Dean said the best way to end Murray Plains’ unpaid super shame was for the Federal Government to mandate that all employers made superannuation payments at the same time as they paid their workers’ wages.

“Murray Plains MP Peter Walsh can add his voice to fix this problem once and for all,” Mr Dean said.

“With little punishment meted out to those responsible for the unpaid super scandal it is time for Murray Plains’ federal and state politicians to act.”

However, Mr Walsh said the Federal Government's planned introduction of SuperStream through the ATO's Small Business Superannuation Clearing House would simplify super payments by employers.

“It will allow employers to make all super guarantee contributions in a single electronic transaction,” he said.

“This will modernise the superannuation system to ensure more employees receive their entitlements more frequently.”

Mr Walsh said superannuation was part of an employee's pay entitlement and should be paid.

“It is wrong employees don't get paid as they should,” he said.

In the Murray Plains electorate, 34.4 per cent of workers reported to be underpaid.

“Across the state almost a third of Victorian workers are having their super stolen; Murray Plains is not immune,” Mr Dean said.

“Unpaid super blasts a hole in workers’ savings, harming their quality of life in retirement.”