Australian workers lose more than $4.7 billion a year in unpaid super — and the ATO rarely penalises employers

June 30 2025
ABC News.

More than 80 per cent — several billion dollars annually — of unpaid superannuation goes unrecovered, and the authority in charge rarely penalises employers who do not pay it.      

Richard Aichinger says his son hasn't been paid superannuation for more than 12 months, despite reporting it to the Australian Taxation Office (ATO) at the start of the year.

The 19-year-old, who is a second-year electrical apprentice, has approached his boss on numerous occasions, but hasn't received any clarity.

"They just keep getting the answer that, 'Yeah, they'll be paying it soon'," his father says.

Mr Aichinger, from New South Wales, says his son hasn't heard anything since he reported the issue to the ATO back in February.

"He's very annoyed about it," he says.

"But being young and straight out of school, it's something he shouldn't have to confront and he probably feels a bit intimidated about even reporting it to the ATO — he's a little bit concerned about job security."
Super lifts to 12pc tomorrow
From July 1, the "superannuation guarantee" rate will increase from 11.5 per cent to 12 per cent.   

That means an amount equivalent to 12 per cent of your ordinary earnings should be paid into your super fund by your employer.

You can check if that's happening through the government's myGov service or directly through your super fund.

Australia's retirement saving system is mandatory, and the funds controlled by the sector are set to surpass the UK and Canada within the next five to seven years to become the second-largest pool of retirement savings in the world, despite our small population.

But that's only if the money gets there.

ATO rarely penalises firms that underpay super
Misha Schubert, from the super funds' peak body the Super Members Council, says the ATO hasn't been tough enough on dodgy employers.

"The ATO needs to be a strong cop on the beat and really lift the bar on its compliance and recovery efforts, to ensure that Australian workers are getting paid the super they are legally owed," she says.

The ATO recovered just 17 per cent of the $4.7 billion in unpaid super for 2020-21, the most recent available figures.

"Every week in Australia, $100 million that is owed to workers in super does not make it into their super accounts," Ms Schubert adds.

Misha Schubert 2025
The Super Members Council's Misha Schubert says most businesses do the right thing, but too many don't.

A 2024 report by the council calculates that 2.8 million people are failing to receive their full super entitlements each financial year, with the average underpayment per affected worker being $1,810.

Australians missing out on super payments

New analysis released by the super industry has found one in four workers is missing out on compulsory superannuation payments, with women and those in lower-paid jobs worst hit.

"The size and scale of that challenge is shocking, and there needs to be further uplift in the proactive efforts to recover that money for workers," Ms Schubert says.

In 2020-21, the ATO issued 9,594 penalties for unpaid super. But only 4,124 (43 per cent) of them required the business to pay a penalty above remediation of the unpaid amount.

That means for most businesses caught doing the wrong thing, the amount they paid was simply the money they should have paid workers before they got caught.

A question at Senate Estimates revealed fewer than 1 per cent of those businesses copped the maximum 200 per cent penalty.

In a statement, an ATO spokesperson said the issue is important.

"The ATO takes non-compliance with superannuation seriously. We have a focused review and audit program into the non-payment of super guarantee to protect workers and their retirement savings,"  the spokesperson said.
In its most recent data, the ATO says it received around 28,100 referrals about unpaid super from employees, and that 23,600 of those were finalised. This resulted in $659 million in super being paid, and $300 million in penalties.

The figures don't say how much most employees got back, or what percentage of employers paid a penalty for their failings.

The statement adds that 167,000 employers received reminders or "prompts" to pay unpaid super, and that raised $240 million.

Those missing out say it's tough to get action
On June 6, Mr Aichinger sent an email to his local federal MP, Emma McBride, and also to Amanda Rishworth, the minister for employment and workplace relations, outlining the issues with his son's superannuation.

Within a week he got a call from the ATO.

"She acknowledged my son had done the complaint online, she said several other employees from the same business had also, and then I quizzed her about, 'Well, why isn't there any feedback or anyone responding back to my son?' Mr Aichinger said.

First Nations Australians being failed by superannuation system, advocates warn


Some of the biggest barriers identified were rigid requirements for verifying identities and the reliance on digital platforms to access funds.

"We had one client who could not provide his ID, had no internet, phone, no utility bills to be able to prove who he was, and yet the super firm was still insisting on him just going online and just doing everything through that process."

https://www.abc.net.au/news/2025-07-23/report-superannuation-access-issues-first...



What a load of sobbing nonsense. You cannot open a super fund account or have  TFN without a valid, recognised ID. And your contributions are paid in by the boss electronically.

Frank wrote on Jul 23^rd, 2025 at 10:12am:


You're trying really hard these days to turn any bit of news into a chance to punch down on indigenous people...

Are you ok?

John Smith wrote on Jul 23^rd, 2025 at 10:22am:

D' oh.

You can't be a stone age nomad AND get 21st century treatment. You need to join the modern world IF you want its benefits.
Otherwise stay off-grid like it's 10,000 BC.

Aborigines can have it both ways. We can't carve their bank details on a stick and bury it behind the bottle shop for next time they are in town from a walkabout.

Frank wrote on Jul 23^rd, 2025 at 6:55pm:


if they're wages are being forced into super, then super companies need to provide a way to access the money for those that don't live near a motor registry or have internet. It's their money.

ProudKangaroo wrote on Jul 23^rd, 2025 at 8:32pm:


the first step is not editing my post to make it mean the opposite of what I said, you little s***t. You are not in a position to be condescending to anyone when you are playing at being as dishonest a s***t as gweggy of Smitho thicko.  Respond to my point, not to bastardised-by-you deformed version of it, dishonest little teapot.


Try again :


Not at all.

But it is another sobbing story about Aborigines - 'first nations' - trying to stay unintegrated to the modern world and then kvetching about the modern world failing them.

Now a few of them failed to do in even elementary effort to leave the Stone Age but their 'advocates' now want more funding for their little quango to 'help'.
Aboriginal advocacy. How about the sodding lawyer helps his 'clients' get an ID. How about those fabled elders make sure that the kiddies born in their tribe have their birth registered, that they go to school, that the 'comunity' doesn't put up with drunken violence at the expense of the kiddies. What ELSE are elders for? Just to hold their hands out for WTC bakshish?
How about that?? Is that punching down and wacist?

If they are a sodding First Nation, get themselves organised like they arent just a bunch of lost layabouts from prehistory. Can't have it both ways.

Frank wrote on Jul 23^rd, 2025 at 8:44pm:


I simply replied to.what you said, no need to be so triggered...

ProudKangaroo wrote on Jul 23^rd, 2025 at 8:55pm:


He's so easily triggered these days.

I think it has something to do with his buyer's remorse regarding Trump.