An electorate in Sydney and Melbourne are the two most “ripped off” when it comes to unpaid superannuation, according to Industry Super Australia (ISA).
ISA had released a breakdown of the 20 worst unpaid super electorates and roughly three-in-10 workers from the electorates in ISA’s top list were being underpaid super.
The Sydney electorate and Lalor in Melbourne’s western suburbs were the two most “ripped off” electorates, with 30,000 and 27,000 workers affected respectively.
Last month ISA called for politicians to fix super underpayments, releasing modelling which showed more than a quarter of Australia’s workers had been ripped off $5 billion in super.
ISA chief executive, Bernie Dean said millions of Australians were unaware they were being ripped off on super, assuming they have been properly paid because it appears in their payslip.
“Until government fixes the problem by making employers pay super with wages, Australians need to be aware they could be missing out and take steps to protect their retirement savings,” Dean said.
“Most employers are doing the right thing, but they are being undercut by dodgy competitors who are ripping people off.
“Paying super with wages is the only way to get workers their money and level the playing field for business.”
According to ISA, 70% of workers were unaware super could be legally paid four times a year and not with their wages.
“The unpaid super scourge impacts workers in every corner of Australia, but it is areas with a high proportion of young people and workers in trades that feature most in the list of the worst 20 federal electorate for unpaid super,” ISA said.
“Not being paid super can blow an up to $60,000 hole in retirement nest eggs.”
Top 20 unpaid super electorates by amount of people underpaid
Source: ISA analysis of 2018/19 ATO tax file and ABS data.