Almost $600 million will be returned to the superannuation accounts of 400,000 Australians due to the one-off superannuation amnesty.
In a rare ceasefire in the super wars, the Association of Superannuation Funds of Australia (ASFA) has welcomed reports that the government’s super amnesty will return more than $588 million to Australians.
“Every additional dollar in people’s superannuation account will have an impact on the adequacy of people’s retirement,” said ASFA deputy CEO, Glen McCrea.
“Sadly, too many individuals are missing out not only on their superannuation contributions but the potential returns from having more money in their super account…It is essential that all employers should comply with their superannuation guarantee obligations and pay SG contributions when they are due.”
Assistant minister for superannuation Jane Hume initially estimated that the one-off amnesty would return $160 million with some 14,000 employers coming forward over the lifetime of the amnesty, and said that the initiative was “very successful” and had reunited Australians with money that was “rightfully theirs”.
But Industry Super Australia (ISA) estimates that Australians lose some $6 billion a year – 10 per cent of the annual unpaid super debt – to “dodgy” employers and has demanded the government institute payday super to prevent payments falling through the cracks of a quarterly pay cycle.
“While it is pleasing that workers have received money owed to them the amount recovered by this 25-year amnesty is a tiny fraction of the tens of billions workers have lost in unpaid super,” ISA chief executive Bernie Dean told Investor Daily.
“It is now up to the government to show they are serious about tackling both historic and future unpaid super – by lifting its game on compliance, mandating super be paid on payday and including it in the National Employment Standards – so workers can better keep track of their payments and pursue action to recover their entitlements if they have to.”
The architect of the Retirement Income Review (RIR) has hit back at critics and accused former prime minister Paul Keating of sowing fear ov...