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Millions Missing Out On Superannuation (Read 10296 times)
whiteknight
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Millions Missing Out On Superannuation
Mar 26th, 2018 at 3:07pm
 
Millions of Australians missing out on superannuation, amid rise of gig economy

ABC News
March 26 2018


Millions of workers are missing out on superannuation or failing to gain enough superannuation to secure a decent retirement, sparking calls for the entire system to be overhauled.   Sad

The coverage of the superannuation system is being undermined by:

    The rise of the gig economy, with a growing number of workers not classed as employees and ineligible for compulsory employer-funded superannuation;
    Billions of dollars of retirement savings lost to employees each year through unpaid superannuation;
    A significant share of the workforce in low-paid or insecure work who do not accumulate sufficient retirement savings.

By law, employers in Australia must pay superannuation to any employee who earns more than $450 a month.

But 1 million workers in Australia are classed not as employees, but as independent contractors, and for the most part are ineligible for compulsory superannuation.
Low-paid workers falling between the cracks   Sad

The number of people outside the scope of the compulsory system is accelerating with the rise of apps such as Deliveroo and Uber, which construct their businesses as third-party services connecting the "self-employed" with customers.

"I think it's a huge problem, and I think we're not dealing with it now," Associate Professor Sarah Kaine, a gig economy specialist at the University of Technology Sydney's Business School, told Four Corners.

    "While that might be OK temporarily, it's going to come back and bite us in five, 10, 15, 20 years as people who have relied on freelance work, gig work, come to retire.

"Then that societal risk, if you'd like, that we've accepted allowing this kind of work, comes back to those of us who've been paying tax, comes back to those who will be paying tax who'll have to bear the burden without enough superannuation."

Australia's $2.5 trillion superannuation retirement savings pool is one of the largest in the world.

The Financial Services Council, a lobby group for the investment management industry and superannuation funds run by banks and other financial institutions, wants the Federal Government to have a Productivity Commission inquiry into the implications of the gig economy for superannuation.

"For superannuation to be a successful piece of public policy, which it has been to date, it's got to be flexible enough to enable people in the gig economy to have sufficient money for retirement," Financial Services Council chief executive officer Sally Loane said.

    "We can't let people fall between the cracks."

"From what we understand, being paid superannuation in a gig job is extremely rare," Ms Kaine said.

"Largely because gig workers have been intentionally classified as 'not employees', so independent contractors, or entrepreneurs, or freelancers, often deliberately to avoid such responsibilities or superannuation on behalf of the organisation."

An influential player in the superannuation industry and the union movement is now calling for compulsory superannuation contributions to be extended to all workers, including those in the gig economy.

"The whole idea was that we needed a universal system. It's not universal right now. Millions of workers are falling between the cracks of the superannuation system in this country," Tim Kennedy who chairs one of Australia's oldest industry super funds, LUCRF super, and is the national secretary of the National Union of workers, told Four Corners.

    "We need a situation where no matter how you're engaged as a worker, no matter what the employer called you, that every hour you work, for every day you work, superannuation should accrue to you.

"That's important. That must happen for it to work. If you are a worker, you should be paid super. Full stop."

Mr Kennedy argues the entire design of the superannuation system needs an overhaul because superannuation is failing vulnerable workers who need the most help to save for retirement.
Low-paid workers super shortfall
Many low-paid workers are not accumulating enough super for a secure retirement.

'This was never a welfare measure'

Former prime minister and treasurer Paul Keating, who played a key role in devising and establishing Australia's superannuation system, bristled at the suggestion that the system was inequitable and should be changed.

    "This this sort of idea that, you know, 'Oh, superannuation's a great play against the ordinary people for the wealthy.' It's just not true," Mr Keating said.

"As the author of the system, let me say with all authority, this was never a welfare measure. It was always a complementary savings measure for middle Australia. Let's say workers on between $65,000 and $130,000.

"The most fruitful pathway is that for categories of workers on lower incomes, they get a payment off the budget, which I established right at the get go."
Our super system isn't serving all Australians
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Its time
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Re: Millions Missing Out On Superannuation
Reply #1 - Mar 26th, 2018 at 3:13pm
 
Imagine our social security bill if Labor didn't bring in Super , ahead of their time the mighty Labor party , it's a shame we have dumb arse conservatives holding us back generations
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whiteknight
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Re: Millions Missing Out On Superannuation
Reply #2 - Mar 26th, 2018 at 3:14pm
 
Many workers are not receiving the superannuation they are owed because of widespread failure by employers, particularly in the small business sector, to fulfil their obligations to pay compulsory superannuation contributions.   Sad

Companies fail to pay about $3 billion in superannuation entitlements to employees a year, according to analysis by the Australian Taxation Office, which has responsibility for collecting unpaid super.

Another study, from Industry Super Australia, put the figure at $5.6 billion with nearly 3 million employees missing out.

"I think it's mind boggling really, when you consider that superannuation is meant to be a guaranteed right," Ms Kaine said.

"The fact that we have such poor compliance is really absolutely astounding."

You can watch Four Corners' Super Risk at 8.30pm on ABC TV.
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lee
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Re: Millions Missing Out On Superannuation
Reply #3 - Mar 26th, 2018 at 3:21pm
 
Its time wrote on Mar 26th, 2018 at 3:13pm:
Imagine our social security bill if Labor didn't bring in Super , ahead of their time the mighty Labor party , it's a shame we have dumb arse conservatives holding us back generations



Labor - Paul Keating.

whiteknight wrote on Mar 26th, 2018 at 3:07pm:
Former prime minister and treasurer Paul Keating, who played a key role in devising and establishing Australia's superannuation system, bristled at the suggestion that the system was inequitable and should be changed.

    "This this sort of idea that, you know, 'Oh, superannuation's a great play against the ordinary people for the wealthy.' It's just not true," Mr Keating said.

"As the author of the system, let me say with all authority, this was never a welfare measure. It was always a complementary savings measure for middle Australia. Let's say workers on between $65,000 and $130,000.



St Paul disagrees with you. Wink
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Re: Millions Missing Out On Superannuation
Reply #4 - Mar 26th, 2018 at 3:44pm
 
lee wrote on Mar 26th, 2018 at 3:21pm:
Its time wrote on Mar 26th, 2018 at 3:13pm:
Imagine our social security bill if Labor didn't bring in Super , ahead of their time the mighty Labor party , it's a shame we have dumb arse conservatives holding us back generations



Labor - Paul Keating.

whiteknight wrote on Mar 26th, 2018 at 3:07pm:
Former prime minister and treasurer Paul Keating, who played a key role in devising and establishing Australia's superannuation system, bristled at the suggestion that the system was inequitable and should be changed.

    "This this sort of idea that, you know, 'Oh, superannuation's a great play against the ordinary people for the wealthy.' It's just not true," Mr Keating said.

"As the author of the system, let me say with all authority, this was never a welfare measure. It was always a complementary savings measure for middle Australia. Let's say workers on between $65,000 and $130,000.



St Paul disagrees with you. Wink


Oh the welfare bill would've been lower ah hah
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lee
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Re: Millions Missing Out On Superannuation
Reply #5 - Mar 26th, 2018 at 3:55pm
 
Its time wrote on Mar 26th, 2018 at 3:44pm:
Oh the welfare bill would've been lower ah hah



The welfare bill will be lower.

Superannuation is looking at a 45 year (at least) investment plan. The Keating reforms were started in 1992. So currently only 26 years. It is in the final years that the compounding effect of Super really kicks in.

You should really do some study on YOUR super. It is YOU it will affect.
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Re: Millions Missing Out On Superannuation
Reply #6 - Mar 26th, 2018 at 4:32pm
 
lee wrote on Mar 26th, 2018 at 3:55pm:
Its time wrote on Mar 26th, 2018 at 3:44pm:
Oh the welfare bill would've been lower ah hah



The welfare bill will be lower.

Superannuation is looking at a 45 year (at least) investment plan. The Keating reforms were started in 1992. So currently only 26 years. It is in the final years that the compounding effect of Super really kicks in.

You should really do some study on YOUR super. It is YOU it will affect.


Would've been better for everybody at 15 % can't remember who opposed that  Roll Eyes
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lee
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Re: Millions Missing Out On Superannuation
Reply #7 - Mar 26th, 2018 at 4:47pm
 
Its time wrote on Mar 26th, 2018 at 4:32pm:
Would've been better for everybody at 15 % can't remember who opposed that



People can contribute; nothing stopping them.

Oh, you want the employer to pick up the entire tab. Grin Grin Grin Grin Grin Grin
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Re: Millions Missing Out On Superannuation
Reply #8 - Mar 26th, 2018 at 5:21pm
 
lee wrote on Mar 26th, 2018 at 4:47pm:
Its time wrote on Mar 26th, 2018 at 4:32pm:
Would've been better for everybody at 15 % can't remember who opposed that



People can contribute; nothing stopping them.

Oh, you want the employer to pick up the entire tab. Grin Grin Grin Grin Grin Grin


That was the intention from the outset and in return we gave up pay rises for a few years .
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lee
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Re: Millions Missing Out On Superannuation
Reply #9 - Mar 26th, 2018 at 5:34pm
 
Its time wrote on Mar 26th, 2018 at 5:21pm:
That was the intention from the outset and in return we gave up pay rises for a few years .



Yes. Gave up pay rises for a few years. Then wanted bigger pay rises AND the increased superannuation payments.
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Re: Millions Missing Out On Superannuation
Reply #10 - Mar 26th, 2018 at 5:45pm
 
lee wrote on Mar 26th, 2018 at 5:34pm:
Its time wrote on Mar 26th, 2018 at 5:21pm:
That was the intention from the outset and in return we gave up pay rises for a few years .



Yes. Gave up pay rises for a few years. Then wanted bigger pay rises AND the increased superannuation payments.

Link

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lee
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Re: Millions Missing Out On Superannuation
Reply #11 - Mar 26th, 2018 at 5:55pm
 
Its time wrote on Mar 26th, 2018 at 5:45pm:
Link



nah, my turn. Grin Grin Grin Grin
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juliar
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Re: Millions Missing Out On Superannuation
Reply #12 - Mar 26th, 2018 at 6:21pm
 
In te very unlikely event that Bull S. gets in and starts a mongrel coalition with the vile Greenies SUPER won't be worth a bumper as Labor will steal money to give to the almost bankrupt unions.
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lee
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Re: Millions Missing Out On Superannuation
Reply #13 - Mar 26th, 2018 at 6:50pm
 
Of course unionists super would be much better off if the unions weren't suckin' sch!t out of the industry super funds.
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Re: Millions Missing Out On Superannuation
Reply #14 - Mar 26th, 2018 at 7:02pm
 
9 out of the top ten  are industry funds  Grin Grin Grin
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