Published: 12 Apr 2018
The Federal Government has released draft legislation for consultation with the aim of addressing the problem of unpaid superannuation.
While Cbus welcomed the Federal Government’s consultation process on draft laws aimed at increasing compliance with the payment of superannuation entitlements, the fund is calling for a more comprehensive response to genuinely address the issue, starting with implementing the alignment of super with wages.
The failure to comply with superannuation payment obligations is estimated in the multi-billions per year, robbing working people of their hard-earned retirement savings, creating an uneven playing field for employers doing the right thing and ultimately costing the tax-payer in foregone revenue and welfare payments. Cbus CEO David Atkin said the fund intends to make a considered response as part of the consultation process.
“We agree with the Minister, Kelly O’Dwyer that it’s unacceptable for people not to be paid their entitlements and welcome the opportunity to put forward our views about addressing the problem.
“But we believe the Government needs to take further steps to ensure people do not miss out on their legal entitlements and one immediate and effective step that should be implemented is the alignment of the payment of super with wages.
“The draft laws provide some welcome, but only minor, reforms given the magnitude of the problem.”
Mr Atkin cited the comprehensive 32 recommendations made in the Senate Economics Committee report Superbad – Wage theft and non-compliance of the Superannuation Guarantee, handed down in May 2017 and suggested the Government should be progressing them all.
“Our fund represents members working in the building and construction industry that has some of the highest incidence of non-payment of super. This has a major impact on their retirement incomes. It remains an area of serious concern for the industry and it requires a serious response” he said.
For more information on insolvencies in the construction industry and the Federal Government’s response to Senate Economic Committee’s report on the issues see:
The Superbad report can be viewed at: