Every week, I receive emails from readers who discover that their employer has failed to pay compulsory employer
What happens to the unpaid super entitlements? Very little if the company has disappeared, even when the owners have set up a new company.
I must point out that the majority of employers do the right thing, and when they don’t, the ATO usually chases up slack employers. I explain the process you need to go through if you discover your employer hasn’t paid your Superannuation Guarantee entitlement in the following articles:
- Super for beginners, part 18: My employer hasn’t paid my SG. What can I do?
- Super for beginners, part 19: My employer has gone broke. What happens to my SG entitlements?
Even so there are circumstances where even the ATO is unable to assist you, namely, when a company collapses and the company has no assets. According to a media release issued by
…the SG system works well for the majority of Australians. However, those most at risk of not receiving their superannuation entitlements are employees who are least empowered, being predominately [sic] low paid, casual and young workers.
Finally, after nearly 20 years of compulsory employer super, the federal government has announced that directors of failed companies will be personally liable to pay the unpaid Superannuation Guarantee entitlements of employees.
The aim of this proposed rule change is to discourage future non-payment of SG by employers, and to discourage the practice of shutting down one company and walking away from outstanding SG obligations and then starting a new ‘phoenix’ business.
More regular SG information to employees
Minister Shorten also flagged that superannuation measures designed to empower workers with more information about their super entitlements would be implemented after consultation with the superannuation industry, employers and unions. The measures involve employees receiving:
- Information on their payslips detailing the amount of superannuation actually paid into their account
- Notification from their super fund if regular SG payments cease to be paid. The notification would occur quarterly.
The aim of these proposed measures is to shorten the timeframe between when an employer fails to pay SG, and when an employee discovers the non-payment.
