Labor will Save Workers' Super From Dodgy Bosses

12 January 2019

A Shorten Labor Government will help workers get their unpaid superannuation off unscrupulous employers – and we’ll make sure dodgy bosses are appropriately punished.
 
A fair go means fair pay and conditions – and that includes superannuation.
 
“Superannuation is part of a worker’s pay and conditions. Bosses who deliberately avoid paying their workers superannuation are breaking the law – and they should be punished to the full extent of the law”, said Dr Mike Freelander MP.
 
“Labor will change the laws to include a right to superannuation within the National Employment Standards, which will give all employees the power to pursue their unpaid superannuation,” said the Member for Macarthur.
 
Currently unpaid or underpaid employer superannuation contributions are a debt owed to the Australian Taxation Office, rather than the worker. Unless there is a clause in their award or agreement, workers can’t chase this money – as the money is not technically owed to them.


“By placing superannuation within the National Employment Standards in the Fair Work Act, a Shorten Labor Government will empower all employees to recoup unpaid super from employers through the Fair Work Commission or the Federal Court,” said Dr Mike Freelander MP.

Labor will also strengthen the ATO compliance regime and increase penalties for employers for underpayment or non-payment of superannuation.
 
Scott Morrison and Stuart Robert’s proposed solution for unpaid super is to grant an amnesty on penalties.
 
Morrison wants dodgy bosses who rip off workers to get off scot-free. Labor will hit them with bigger fines.
 
Employers who underpay superannuation to their staff because of a false or misleading statement will face fines equal to 100 per cent of the unpaid super. Employers who fail to tell the ATO about unpaid superannuation when asked will face fines equal to 300 per cent of the unpaid super.

“The underpayment or non-payment of superannuation is an enormous issue,” said the Member for Macarthur.

 

According to Industry Super Australia, nearly three million Australians experienced superannuation non-payment or underpayment in 2015-16, totalling an incredible $5.9 billion in unpaid super.  

“Unpaid superannuation hits young and low income Australians hardest”, said Dr Freelander.

 

Recent reports have shown that 75 per cent of workers affected by unpaid or underpaid superannuation are under 35 years of age, earn under $30,000, and/or are in blue collar jobs.