We understand life can be busy, however it is important to stop and check that you are being paid your legally-entitled superannuation.
Employers, regardless of how big or small the business is, are required by Federal Government law to pay at least 9.5% of all eligible workers’ ordinary time earnings to their superannuation accounts if they earn more than $450 a month (before tax).
This is called the Superannuation Guarantee (SG). Your entitlements can be hard to keep track of if:
- you change jobs,
- work several part-time jobs or
- you are employed on a casual basis.
An easy way to check this is by comparing your payslips to your superannuation statement. This can be made simpler by getting online access to your superannuation fund, for more up to date transactions.
You may be thinking, well it’s only a small amount of superannuation I’ve missed out on, what’s the big deal? Let’s look at the following example:
Bob is 30 years old, and his employer has not paid his super for the last 2 years, totalling $10,000. If this amount had been invested in Bob’s super fund along with a compounding rate of return of 7%; by the time Bob has reached retirement age of 65 years old, he has missed out on roughly $105,000 in earnings over that time frame. Now it is easy to see that the ‘small’ amount has turned out to be quite a significant amount by the time you retire.
If you think your employer has missed paying your super, there are two easy steps you can action:
1. Talk to your employer
If you have any questions regarding your superannuation you should speak to your employer first to find out how much they are paying and how often the payments are made.
2. Contact the Australian Tax Office (ATO)
If you’re not satisfied with the information from your employer, your next point of contact is the ATO. The ATO has an online tool to report unpaid super contributions. Please ensure you complete the above steps before commencing the online tool. Alternatively, you can call the ATO on 13 10 20.