Media Release

Unpaid super – workers deserve better

22 March 2017

Unpaid super – workers deserve better

The Association of Superannuation Funds of Australia (ASFA) is calling on the Commonwealth Government to better fund the tax office to audit businesses for unpaid superannuation entitlements and for super to be included in the definition of unpaid employment entitlements under the Fair Entitlements Guarantee.

ASFA CEO Dr Martin Fahy said recent reports show substantial non-payment of what should be compulsory superannuation.

“Non-payment of super is increasing in Australia with at least 690,000 or 6.5 per cent of the workforce affected annually,” he said.

A 2015 report found affected Australians lost an average $3,800 each year or nine months’ worth of payments for someone on average weekly earnings. The cumulative effect of this loss is substantial. An average 25 year old impacted by this for five years loses 14 per cent of their retirement income or $8,000 a year at retirement.

The Australian National Audit Office (ANAO) found audits undertaken by the Australian Taxation Office (ATO) have more than a 70 per cent success rate in identifying unpaid super obligations.

“We are calling for an additional $10 million per year for the next four years to help the ATO detect employers who are short-changing workers,” Dr Fahy said.

“Money that should be going into super and helping drive economic investment and long term improvements in individual retirement outcomes is being lost.

“People need that money to live better post-work and the entire Australian community benefits when the right thing is done for employees. Unpaid super means a drag on age pension expenditures by the government. That is a cost to everyone.”

Dr Fahy said another key area for improvement in Super Guarantee payment outcomes was the treatment of unpaid superannuation in the case of employer insolvency and bankruptcy.

“This area is currently subject to a complex combination of legislative provisions but the focus should be on achieving the maximum possible recovery on behalf of affected employees,” he said.

“It’s rough enough when Australians impacted by insolvency and bankrupt employers lose their job.

“To lose their super too is the ultimate insult because the long-term benefits of compound interest means the loss is long-term and compounding too.”

ASFA estimates it would cost up to $150 million per year to include unpaid Super Guarantee payments in the Fair Entitlements Guarantee administered by the Australian Government, with up to 55,000 affected individuals who would benefit from the initiative annually.

The ATO has previously indicated that about 50 per cent of superannuation debts they deal with relate to insolvency. Australian Securities and Investment Commission (ASIC) data indicates non-payment of super is more common in: accommodation and food services; construction; business and personal services; retail trade; and, transport industries.

For further information, please contact:

Teresa Mullan, Media Manager, 0451 949 300.

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system so people can live in retirement with increasing prosperity. We focus on the issues that affect the entire superannuation system and represent more than 90 per cent of the 14.8 million Australians with superannuation.

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

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Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.