For anyone who isn’t aware, employers are obligated to pay the 11% superannuation guarantee entitlement. Unfortunately, not all bosses do the right thing by their employees.
In fact, $4.7 billion of superannuation isn't paid to workers each year, according to Industry Super Australia.
If you’re someone who works in accommodation, construction, or food industries, watch out - this places you in the group most likely to be ripped off by your boss. According to a report put out by Treasury, this likelihood increases further amongst employers with turnover of less than $10 million who employ less than 30 staff who aren't paying superannuation.
The bottom line - not being paid superannuation is the same as money that is rightfully yours being stolen from you.
Yikes! How do I find out if I’m being paid my full 11.5% superannuation?
Badly behaved boss aside, it’s on you to check that the correct amounts are paid into your super fund at the right time.
Currently, your employer must pay your super four times a year. However, some employers pay more frequently. The next quarterly deadline is October 28, which is for the three months from July 1 to September 30.
If there isn't a payment on or before October 28, something dodgy could be going on behind the scenes, and your alarm bells should be ringing.
What can I do if my super hasn’t been paid?
1. Speak to your employer
First things first - ask your employer why no superannuation has been paid.
Not all late super is a sign of something shady - there could be a genuine mistake that’s caused an issue, such as your boss having the wrong fund details for you.
If something is going on, though, it’s a good idea to keep a record of the conversations and emails, just in case you need to pursue the underpayment further. Try to get your chat with your boss in writing. If your conversation is verbal, you can try following up afterwards via text or email to make sure there’s a physical record of the steps both of you have taken.
2. Notify the tax office
If your chat with your boss doesn’t lead to your super being addressed, it’s time to lodge a complaint called an employee notification with the tax office.
The tax office governs superannuation law and will carry out an audit, meaning that they’ll order your employer to make retrospective payments to the tax office for the super they’ve missed. They will also have to pay out any additional penalties, such as interest.
If the tax office takes this action, and your employer still refuses to pay, any of that written correspondence with your employer we prepared in step 1 can be helpful evidence to support any future legal proceedings. The bad news: many SG debts go unrecovered because the small companies that haven’t paid them have gone bankrupt
Why does getting my super paid matter, anyway?
Simply put: no super = no insurance.
One of the tragedies of not being paid superannuation is being uninsured for a period. Most Australians have life and total and permanent disability insurance through their superannuation fund- Meaning that if something unexpected and debilitating happens to you, you’ll have a plan B ready to go in the form of insurance saved from work you’ve done in the past.
Each fund has different insurance conditions, but actively receiving contributions from an employer is what triggers the insurance.
The bottom line for unpaid super - if you develop a disability (or, worst case, you die), anyone who depends on your income may not be able to access death or total and permanent disability insurance payments without taking legal action.
That sounds bad - how can I make sure my super is being paid on time?
One of the complications of checking your superannuation payments and whether the amount is correct is that your super payments aren't linked to your real-time pay periods.
This can make it a bit tricky to track because you have to wait for quarterly dates instead of checking when your pay comes in. Further issues come as it isn’t a clear-cut process for the tax office to detect and recover unpaid super.
Around 9 million Australians will have to wait over two years to benefit from superannuation being paid with each pay period. This will come into effect on July 1, 2026.
This might sound like an issue. But it also means that Australians will be getting more super, because they receive them earlier and more frequently throughout their working life.
By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6000 or 1.5% better off at retirement, according to the Treasurer, Jim Chalmers.
More frequent super payments will also make employers' payroll management smoother with fewer liabilities building up on their books, explains Chalmers. Giving your boss less excuses when it’s time to get your super paid.
Over the next two years, make sure to check the quarterly deadlines for your superannuation, and that your employer is being mindful of when they should be paying yours.
