smh.com.au
3.3 Million Australians Lost \$5.7 Billion in Super Due to Employer Underpayments
A recent study revealed 3.3 million Australians missed out on \$5.7 billion in superannuation in 2022-23 due to employer non-payment or underpayment; new laws will require employers to pay super with each salary payment starting July 2026.
- What is the magnitude of the superannuation underpayment problem in Australia, and how will the proposed payday super legislation address it?
- In 2022-23, 3.3 million Australians lost \$5.7 billion in superannuation due to underpayment or non-payment by employers. New laws mandating payday super, to be implemented by July 2026, aim to rectify this by requiring employers to pay super with each salary payment.
- What are the primary causes of inconsistent or varied superannuation contributions from employers, and how can employees verify their superannuation payments?
- The shortfall in superannuation payments stems from employers' failure to meet their legal obligations. The issue is exacerbated by the current quarterly payment system, leading to compounding losses for employees. The upcoming payday super legislation will improve the situation by increasing payment frequency and imposing stricter penalties.
- What are the potential long-term impacts of the payday super legislation on Australian retirement savings, and what steps can employees take if they suspect underpayment?
- The projected \$600 million increase in unpaid super since last year highlights the urgency of the problem. Payday super will likely mitigate future shortfalls, but enforcement and employee awareness remain critical to ensure full compliance and maximize retirement savings. The long-term impact will depend on effective implementation and employee vigilance.
Cognitive Concepts
Framing Bias
The article uses emotionally charged language in the introduction, such as "missing out on a free $1700 a year," to immediately grab the reader's attention and highlight the negative consequences of underpaid super. This framing, while effective in engaging the reader, prioritizes the negative impact over a neutral presentation of the facts. The headline itself, "The $1700 question", uses a provocative question to immediately engage the reader emotionally, focusing on the potential financial loss rather than presenting a balanced overview of the issue.
Language Bias
The article employs emotionally charged language, for example, describing the potential loss of $1700 as enough to buy "a return flight somewhere nice" or "more than 1000 bags of rolled oats." These examples, while illustrating the impact, inject a subjective and somewhat hyperbolic tone. More neutral phrasing could have been used. Additionally, the use of "beefed-up penalties" is loaded, suggesting a strong emotional response rather than neutral reporting.
Bias by Omission
The article focuses heavily on the issue of underpaid superannuation, but omits discussion of potential reasons why employers might underpay, beyond simple calculation errors. It doesn't explore systemic issues, employer capacity, or the impact of differing employment structures. While acknowledging space constraints is valid, a brief mention of these complexities would enhance the article's balanced perspective.
False Dichotomy
The article presents a somewhat false dichotomy by implying that the only solution to underpaid super is the upcoming payday super legislation. It doesn't fully explore alternative solutions or the potential limitations of the new legislation. While advocating for the new laws is understandable, presenting them as the sole answer oversimplifies the problem.
Sustainable Development Goals
The article highlights the issue of underpaid superannuation, impacting millions of Australians and costing billions of dollars. Addressing this issue through new laws and improved employer practices will contribute to fairer wages and improved retirement savings, directly benefiting workers and boosting economic growth. The implementation of "payday super" will ensure timely payments, promoting financial security and reducing economic inequality among workers.