The Australian Taxation Office estimated employees were owed $3.4 billion worth of super in 2019-2020.
“We regularly remind clients to check their superannuation accounts to ensure they are on track and payments are being made by their employer,” says Greg Redington, Director, Coutts Redington.
“It’s surprising the amount of super entitlements in Australia that remain unpaid and the best option is to be checking your account regularly so you can raise any issue with your employer if payments are not being made.”
If you have had several jobs during your working life, you may have had super paid into more than one superannuation fund. You may be able to check via your MyGov account and look at consolidating all super into one main fund to avoid administration fees from various funds and help grow your super.
Employers are required to pay superannuation for most employees. This is known as the Superannuation Guarantee and is currently a minimum of 11% of the employee’s ordinary earnings paid into their nominated superannuation fund.
“If you are a business owner and employ staff, it is your responsibility to pay your employees’ super on time,” Greg mentions.
“We recommend to our business clients to ensure they keep on top of payments to avoid additional penalties for late payments.”
Currently, super must be paid by employers at least every three months.
In the 2023-2024 Federal Budget, the Australian Government announced that from 1 July 2026, employers will be required to pay their employees super at the same time as their salary and wages. While this measure is not yet law, it’s important for businesses to start planning for this change. Greg explains if Payday Super becomes law, it will benefit both the employee and employer.
“The Government’s proposed change is about helping improve retirement outcomes for Australian workers. Also, it is anticipated that Payday Super will help employers streamline payroll processes and avoid the penalties for late super payments.”
Whether you’re an employee or a business owner, take the time for a super review. At Coutts Redington, we are always here to help both businesses and individuals understand their responsibilities and entitlements.
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