ATO reveals $5.7 billion superannuation issue costing millions in retirement: 'Stamp out'
About 3.3 million Australians missed out on superannuation entitlements, averaging $1,730, in the 2022-2023 financial year, Super Members Council analysis of taxation data found. The amount of super going unpaid increased by $600 million from the previous year, with workers now losing $110 million each week.
More than one million people were underpaid super in New South Wales at an average of $1,760, more than 848,000 in Victoria at an average of $1,670, and more than 679,000 in Queensland, missing out on an average $1,720.
RELATED
Aussie cafe owner's 'pressure' of impending $124,000 superannuation change
NAB, ANZ slash interest rates as lenders move despite RBA cash rate hold: 'Not a coincidence'
ATO tax return warning for 2 million Aussies over dangerous act
Payday super reforms will mean employers are required to pay their employees' superannuation at the same time as their salary and wages. Under the current rules, it only has to be done quarterly.
The reform, first announced in May 2023, is due to come into effect from July next year. However, it has not yet been legislated by the government.
Super Members Council Deputy CEO Georgia Brumby said any delays to the law would mean less money in retirement for Australians, which means "less money to pay the bills after a lifetime of hard work".
'The sooner this legislation is introduced and passed, the more time and certainty it will give businesses and the super payment system to prepare — so all workers can get paid their super on time and in full,' she said.
'Payday super will not only stamp out unpaid super — it'll put nearly $8,000 more in the average Australian's pocket at retirement, thanks to more frequent payments and the power of compounding.'Leading accounting bodies have been calling on the government to delay the planned start date of the legislation.
CPA Australia, CA ANZ and the Tax Institute said they all support the plan but have argued the July 1, 2026 date is 'unreasonable' and 'should be deferred for, ideally, 24 months, but at least 12 months'.
They have argued the payment of super is more complex than wages and involves clearing houses, payment gateways and super funds.
Employers will be given a seven-calendar-day deadline from the payment of wages to pay superannuation. If this is missed, they will be liable for an updated super guarantee charge which would include the shortfall, daily interest and an extra enforcement charge.
In November, the ATO revealed its actions had led to $932 million in previously unpaid super reaching the retirement accounts of 797,000 employees in the past year.
The ATO noted that more than 92 per cent of super entitlements were paid without the need for ATO intervention. Employees can check their super account via myGov to see what super payments have been paid into their funds.
If you suspect your super hasn't been paid in full, on time and to the correct fund, the ATO recommends checking with your employer and your nominated super fund.
You can report unpaid super to the ATO.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Simple tactics millions of Aussies can use to save $470 on their winter energy bills
Australian households are about to be slugged with higher electricity bills as the new financial year price hikes start kicking in. But experts say there are a few simple tactics that could help cut bills by hundreds of dollars while still keeping warm this winter. Canstar Blue research found Aussies could save $470 this winter by doing things like cold machine washes, keeping the home airtight, opting for an electric blanket over a heater, and cutting down heater and shower time. Canstar Blue data insights director Sally Tindall told Yahoo Finance small changes could 'go a long way' in keeping your home warm without breaking the bank. RELATED Aussie mum's $1,200 electricity bill shock sparks warning for millions Centrelink's 'balancing' move could provide cash boost or expose debt Commonwealth Bank's fresh alert for millions over mass text message 'campaign' 'A couple of door snakes for $10 each at Kmart and $20 worth of weather seal from Bunnings can potentially end up saving you hundreds over the course of one winter just from sealing up the cracks and gaps in your home,' she said. 'Being selective about the rooms you want to heat is also key to keeping a lid on your electricity costs and keeping you warm. 'For those in the market for a new heater, find one that fits the room you are trying to heat. If you ask the impossible from your heater you'll just end up being both disappointed and cold.' Aussies could save $172 in winter by keeping their home airtight so the aircon runs at 90 per cent capacity, Canstar Blue's research found. Running a heater for six hours instead of eight could save $109, while doing cold machine washes only could save $88, given it uses roughly a third of the energy consumption of a hot wash. Opting for an electric blanket instead of a heater at night could save $52, with an electric blanket costing just $3 to run for one hour a night for 90 days, compared to $55 for running a heater. Meanwhile, cutting down from 10 minute showers to 3 minutes could save $49. Tindall said technology such as Wi-Fi enabled heaters, remote controls in blinds and devices that turn off heaters when the room hits a certain temperature could be helpful, along with heating yourself first. "I'm talking jumpers, trackies, slippers, even a beanie can be a lot more cost effective than reaching for the heater dial and end up saving you a couple hundred dollars by the end of the season," she said. Two in five Aussies surveyed by the comparison site said they were wearing as many pieces of warm clothing as they could to help cut their electricity bill this winter. Meanwhile, 42 per cent are trying to turn on the heater less, 32 per cent are doing cold laundry washes and 19 per cent are buying things like door snakes to keep their home airtight. Electricity price hikes hit Aussies Default electricity prices rose from July 1 in NSW, Victoria, Queensland, South Australia, Tasmania and the ACT. Two of the country's biggest providers, Origin and AGL, also increased prices on their market plans for NSW, Queensland and South Australian customers, while Victorian and ACT customers will see the price hike from August. For the average household, these price hikes could add up to more than $200 to the average electricity bill. Tindall said switching providers could help provide relief. "The regulators might have approved price hikes of up to 9 per cent but some market-priced plans are seeing increases of over 30 per cent,' she said. 'Understand exactly how much your electricity plan is going up by and make a switch if there's a more competitive deal.' Data from Canstar found Sydney consumers could save $314 by switching from the average to the lowest annual cost plan, Melbourne consumers could save $325 and Brisbane consumers $397. In Adelaide, savings are $349, in Canberra they are $360 and in Hobart they are $100 annually. Households will have received a further $75 credit from the government in July, as part of the extension of the Energy Bill Relief fund. A further $75 credit will be delivered from in retrieving data Sign in to access your portfolio Error in retrieving data
Bloomberg
2 hours ago
- Bloomberg
Korea Presidential Aide Pushes for Gradual Corporate Stock Plan
The South Korean president's push to cancel listed companies' treasury stock purchases will strengthen corporate governance but should be phased in to prevent market disruption, a senior aide said. The proposal is part of a broader set of initiatives by President Lee Jae Myung — backed by lawmakers in his Democratic Party, which holds a legislative majority — to bolster the local stock market they view as undervalued compared to regional peers.
Yahoo
2 hours ago
- Yahoo
Amcor (AMCR) Offers Steady Dividends at an Affordable Price Point
Amcor plc (NYSE:AMCR) is included among the 13 Best Dividend Stocks to Buy Under $20. An automated assembly line producing a variety of packaging products. The recent merger between Amcor and Berry Global has resulted in a dominant player in the plastic packaging industry, presenting a promising investment opportunity fueled by expected synergies and consistent growth. Amcor plc (NYSE:AMCR), an Australian firm with a strong international presence, is set to nearly double its revenue through this deal, strengthening its position in both flexible and rigid packaging. The merged company is expected to gain substantial cost savings and scale benefits, positioning it significantly ahead of its nearest competitor in terms of size. The combined company is projected to increase its earnings per share by 15% each year through 2028, with a significant portion of that growth stemming from cost synergies that are expected to be well-executed. Amcor's successful history with past acquisitions like Alcan and Bemis, along with Berry's track record with RPC, adds credibility to its ability to realize these synergies. Amcor plc (NYSE:AMCR) holds a solid dividend history. The company offers a quarterly dividend of $0.1275 per share and has a dividend yield of 5.42%, as of July 21. It is one of the best dividend stocks as the company has raised its payouts for 41 years in a row. While we acknowledge the potential of AMCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data
