What if your super isn’t being paid?
For the majority of Australian workers, their employer is required to contribute 9.5% of their gross wage to superannuation on their behalf.
It’s a good system in so far as it forces those earning a wage or salary to compulsorily invest for their future. (Getting good, unbiased advice about how to invest the money is also a great idea by the way)
Every employee should regularly check their payslip to ensure the super contributions are being made by their employer. In addition, it’s a great idea to regularly check with your superannuation fund or financial adviser to make sure the money has actually been sent to the fund. In an ideal world this would be a given, but unfortunately there are many instances where employers have noted the contributions on payslips however haven’t actually passed the money on to the employees super fund – poor form I must say!
Missing out on employer superannuation contributions can have a big effect on a person’s retirement savings, so what can you do if you suspect your employer hasn’t been making superannuation contributions on your behalf?
Get a transaction statement from your super fund
Getting in contact with your fund is the first step in resolving this issue. A statement should tell you when contributions have been received and for how much. It should also tell you how long it’s been since contributions have been made. This can help you work out when the issue started and why it’s happening.
Talk with your employer
Once you know the details it’s time to talk with your employer about the issue. Bear in mind that employers can pay superannuation contributions quarterly, so the contributions won’t necessarily match your pay cycle. Make sure you understand the pay system in your workplace by talking to your boss or HR person about how your payslip can be deciphered and how often they physically make contributions.
It’s also a good idea to check they have the right details of your super fund. It could possibly be that super contributions are being made but are going to a fund nominated by your employer instead. To fix this you can provide your employer with the details of the fund you wish to contribute to.
Contact the ATO
If you’re not getting any joy from your employer, then the final port of call is the Australian Taxation Office. The ATO keeps track of the super funds attached tom your name and tax file number and you may be able to track the payments that have been made r not made.
You are able to lodge an unpaid super enquiry online and you’ll be asked to provide the ATO with details about your employer and the exact nature of the complaint, including details of the super contributions you believe are missing.
This is the only way to go about claiming superannuation that hasn’t been paid and the process can be a lengthy one. That’s why it’s important to chat with your employer to try and resolve the issue first.
In summary, it’s important to ensure your valuable employer superannuation contributions are being made on your behalf. It may feel confronting and burdensome to take action, however when you consider the importance super will play in your future it’s well worth it.
For more advice on your superannuation, start a conversation with Steve May Financial Services today.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
Shanley Financial Planning Pty Ltd trading as Steve May Financial Services (ABN 19 612 825 180) is a Corporate Authorised Representative of (1265706) of Sensibly Pty Ltd (AFSL 533923)
Nick Shanley, Steve May and Luke Styles are Authorised Representatives of Sensibly Pty Ltd (AFSL 533923)