Moves by the Australian Tax Office to go after employers not paying their workers super has been welcomed by Industry Super Australia.
Although welcoming the action, Industry Super Australia (ISA) has said that the action needs to go further.
According to its analysis, ISA data shows that one in three workers – approximately 2.85 million people – are being undercut by close to $6 billion in super by employers.
The ATO’s compliance action relates to 25,000 people with ISA indicating that this action will only deal with less than 1% of employees currently missing out on their super, meaning that 2.825 million workers will continue to be undercut by employers.
ISA said that many Australian workers think that their super has been paid at the same time as their salary as it appears on their payslip, however there is currently no legal requirement to pay super the at the same time as salary.
The ISA wants to see super payable on payday rather than its current quarterly requirement, with ISA chief executive Bernie Dean stressing that the ATO compliance action has to be supported by penalties for those breaking the law.
"The only way to stop a third of Australia’s workforce having their super stolen is for the Parliament to change the law and make super payable on payday.
"Increased compliance is welcome but the ATO must apply the full force of the law to these rogue employers.
"Australians rightly expect to be paid their legal super entitlement. The fact that one in three workers are being robbed of their super each year in this day and age is extraordinary and must be fixed.
"Federal politicians have their super paid on pay day – it’s time that same protection was extended to all Australians," he said.
Research conducted by Australian market research centre UMR shows that 89% of those surveyed agreed that super should be paid at the same time as wages.