26 Aug 2009
According to the Australian Taxation Office, the squeeze on revenue has led to some employers neglecting their Superannuation Guarantee (SG) obligations.
Employers are required by law to pay super contributions (known as SG) to all eligible employees and these savings are on the same ranking as wages when it comes to employee entitlements. If an employer is late with a payment or does not make a payment at all, it can potentially jeopardise the retirement outcomes for employees.
Superannuation contributions must be paid by specified dates that are determined by the ATO. There are harsh penalties for employers who do not comply with these deadlines. The remaining dates for 2009/10 are:
If you suspect that your super may not have been paid correctly, there a number of things you can do.
1. Talk to your employer. Ask them how often they are paying your super, how much and into which fund. It’s a good idea to ask these sorts of questions when you first start work.
2. Make sure you are eligible to receive super. Usually an employer has to pay super contributions for you if you are under 70 years old and if you are paid at least $450 in salary and wages (before tax) a month. It doesn’t matter if you work casual, part-time or full-time hours. However if you are under 18 years you must work more than 30 hours per week.
3. Know your entitlements. If you are a contractor, your employer may have to make super contributions for you if you are paid under a contract that is wholly or principally for labour - even if you have an ABN. If the contract is partly for labour and partly for something else (for example, the supply of goods, materials or hire of plant or machinery), it will still be a contract for labour if it is principally for labour. 'Labour' includes mental and artistic effort as well as physical work.
4. Check your last member statement from your super fund, or contact them to confirm if your employer has paid your super.
5. If you have established a salary sacrifice arrangement make sure that your employer is not using these contributions to offset their obligation to pay their SG.
If you still believe your employer is not paying you enough or any super, or is not paying the super to your chosen fund, you can lodge an enquiry about unpaid super with the ATO by calling them on 13 10 20. They also have a useful online calculator that you can use to check if you are getting paid enough super.
Prime Super is a not for profit Industry Superannuation Fund. This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. Prime Super is issued by Farm Plan Pty Limited (ABN 81 067 241 016, AFSL 219723). A Product Disclosure Statement is available from the issuer by phoning 1800 675 839
Contact your local representative
The advice contained on the Prime Super website does not take into account your particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product, you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. Prime Super takes no responsibility for you acting on the information provided. Any decision that you make is at your own risk. Before acquiring a financial product you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.
Issued by the Trustee: Prime Super Pty Ltd ABN 81 067 241 016 AFSL No. 219723 RSE Licence No. L0000277 Prime Super ABN 60 562 335 823; RN 1000276