Underpaid super affects 1 in 4 NT workers, tax data reveals
The Super Members Council continues to push for payday super as data reveals Northern Territory workers missing out on $54.4 million a year in unpaid super.
New research conducted by the Super Members Council has highlighted that one in four Northern Territory workers are commonly underpaid super.
The Super Members Council (SMC) undertook an analysis of Northern Territory tax file data which showed more than 25,000 workers were short-changed an average of $2,110 each in 2021–22.
According to SMC, over five years this would total $300 million in unpaid super that Northern Territory workers would have lost.
The council noted payday super would aid in eliminating the problem as workers would not be at heightened risk of being underpaid.
SMC CEO Misha Schubert said passing payday super laws would help Northern Territory workers and all Australians gain their full benefits from the retirement system.
“Payday super on payday will modernise the super system to reduce underpayments for Northern Territory workers. This reform will be fairer for both workers and employers,” she said.
“Passing payday super laws this parliamentary term is crucial to ensure Territorians who are currently being short-changed are paid their super on time and in full.”
Based on the analysis, it was shown that unpaid super reached $172 million over five years in the Solomon electorate in Darwin.
The rest of the territory was underpaid $120 million over five years, according to the tax file data.
Schubert said payday super was a crucial reform and would modernise the super payment system while decreasing the amount of unpaid super across the country.
“Payday super will lead to almost nine million Australians getting their super contributions more frequently throughout their working life.”
“SMC analysis shows the average worker could be $7,700 better off in retirement with payday super because the investment returns accrue and compound sooner.”
Other SMC research highlighted that in 2021–22, 2.8 million Australians missed out on $5.1 billion in legal super entitlements over one year.
Over nine years, Australians missed out on $41.6 billion in unpaid super, with the average worker having missed out on $1,800 in a year, amounting to $30,000 less in retirement savings.
SMC said passing payday super laws would also “level the playing field for businesses” by creating a smoother cash flow and providing a stable system for employers.
“Quarterly super payment allows large super liabilities to accrue and creates an administrative burden from time-consuming reconciliations, which can be prone to miscalculations leading to incorrect payments,” the council said.
“Unpaid super leaves people poorer when they retire. A unified push from the government, all MPs and senators, the super industry, employers and workers are needed to stamp it out.”
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