The ATO has warned employers that paying correct super on time was not optional and it would take action. (Source: Newswire\/Getty) <\/p>\n
More than $1 billion in unpaid superannuation entitlements<\/a> has been clawed back and returned to Aussie workers. The Australian Taxation Office (ATO)<\/a> has warned it will \u201ctake action\u201d to protect employees and there will be consequences for those who deliberately skirt their obligations<\/a>.<\/p>\n Fresh data from the ATO shows $1.1 billion in unpaid super<\/a> has been returned to nearly one million individuals\u2019 super funds in the 2024-25 financial year. Nearly $800 million in super guarantee liabilities were raised through more than 200,000 reminders and prompts from the ATO, along with around 15,000 audit cases.<\/p>\n While most bosses are doing the right thing, ATO deputy commissioner Ben Kelly said the fact that more than $200 million penalties were issued should act as a warning that paying the right super on time<\/a> was not optional.<\/p>\n RELATED<\/p>\n \u201cThe ATO works with employers to support their compliance with tax and super obligations, and takes non-compliance with super guarantee obligations seriously,\u201d he said.<\/p>\n The ATO revealed more than 20,000 firmer actions had been taken against employers who failed to pay the super guarantee charge owing to employees. This included issuing director penalty notices and garnishees, along with legal action.<\/p>\n \u201cThe ATO is committed to ensuring Australia\u2019s workers receive their entitlements. Employers are required to pay superannuation for their eligible workers in full, on time and to the right fund,\u201d Kelly said.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n Super Members Council modelling found 3.3 million Australians were not paid $5.7 billion in super in 2022-23, missing out on an average $1,730 each a year. This can mean people are up to $30,000 worse off at retirement.<\/p>\n Unpaid super disproportionately impacts vulnerable groups, including women, younger workers and low-income earners.<\/p>\n The ATO noted it had more ways to detect and deal with unpaid super<\/a>, including Single Touch Payroll and super fund data. The upcoming payday super change will also make it easier for the ATO to spot unpaid super earlier.<\/p>\n If you haven\u2019t been paid super correctly, you can use the ATO\u2019s online tool<\/a> to report unpaid super contributions.<\/p>\n You can also contact the Fair Work Ombudsman<\/a>, who may be able to help you if you haven’t received all your entitlements.<\/p>\n Payday super laws<\/a> will require employers to pay super at the same time as wages, instead of quarterly. This will come into effect from July 1, 2026.<\/p>\n For a 25-year-old worker, the government found more frequent and earlier contributions would increase their retirement balance by an extra $6,000 in today\u2019s dollars.<\/p>\n For a 35-year-old who has had super unpaid, recovering it would boost their retirement balance by more than $30,000.<\/p>\n \u201cThe introduction of Payday Super will allow the ATO to detect unpaid super earlier and take action to help a business get back on track and stay on track,\u201d Kelly said.<\/p>\n \u201cFor those businesses who don\u2019t want to pay, the ATO will be able to take action faster to protect their employees\u2019 super entitlements.\u201d<\/p>\n The ATO said employers who try to do the right thing and resolve any issues quickly will not be the focus of its compliance action for the first year. It will also differentiate between low and high-risk employers.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n