Thousands of young Australians have been ripped off by bosses who forgot or refused to pay superannuation entitlements, collectively costing millions in retirement. <\/p>\n
Fresh figures released by Cbus Superannuation found nearly 30,000 construction workers under 35 had missed out on or had delayed super payments last financial year. <\/p>\n
The alarming figures come as employers are warned they have just 100 days to prepare for sweeping changes that will force them to pay super on payday or cop large fines. <\/p>\n
Starting from July 1 this year, employers will have to pay superannuation to their staff at the same time they pay any other salary or wage.<\/p>\n
Before the change comes in, superannuation \u2013 which appears on a pay slip at the same time as regular entitlements \u2013 only needs to be paid four times a year. <\/p>\n
Treasury estimates for the average 25-year-old worker\u2019s retirement balance, this is the equivalent of receiving an extra $6000 in today\u2019s dollars.<\/p>\n
It will make them around 1.5 per cent better off when they retire. <\/p>\n
Cbus Super chief member officer Tom Garcia said the shift to payday super would ensure super is paid on time, protecting worker entitlements and leaving no room for the employers who try to dodge it.<\/p>\n
\u201cWhether we\u2019re collecting late contributions or chasing the small number of dodgy bosses who simply weren\u2019t going to pay, these young workers are the ones paying the price,\u201d he said. <\/p>\n
\u201cIf it isn\u2019t in their accounts generating compound returns, they\u2019re losing out in retirement.\u201d <\/p>\n
Mr Garcia said unfortunately it was common for workers in the building and construction industry to miss out on superannuation entitlements. <\/p>\n
\u201cThese changes mean super contributions will be in accounts on payday and generating returns to support a more comfortable retirement,\u201d he said.<\/p>\n
\u201cIt will make it easier for workers to keep track of super payments and play a key role in lessening the unpaid super scourge.\u201d<\/p>\n
Employment Hero founder and chief executive Ben Thompson previously told NewsWire the change would benefit workers. <\/p>\n
This change is positive for working Australians, with more frequent super investment maximising the benefits of compounding growth,\u201d he said.<\/p>\n
But he warned the changes would have a major impact on small businesses in particular.<\/p>\n
\u201cThe average Australian business will face a cash flow crunch of $124,000 according to our modelling,\u201d he said. <\/p>\n
Most small businesses simply don\u2019t have that kind of money lying around.\u201d <\/p>\n
Mr Thompson ran a poll of his customers with around 65 per cent of small and medium enterprises saying these changes would have a moderate to huge impact on the day-to-day running of their business. <\/p>\n
\u201cCurrently, around 87 per cent of businesses on our platform pay super quarterly and rely on those funds as interim cashflow,\u201d he said.<\/p>\n
\u201cWith 26 per cent of businesses expected to face cashflow issues under Payday Super, we\u2019re looking at real consequences for employment.\u201d<\/p>\n
Mr Thompson noted Australia was already one of the most complex countries in the world to run a small business and this was adding to the pressures businesses face. <\/p>\n
\u201cWe encourage employers to plan early and get ahead of their cash-flow to avoid scrambling when the new compliance era begins.\u201d<\/p>\n
Mr Garcia agreed, urging businesses to get ready. <\/p>\n
\u201cWith only 100 days to go employers should start preparing now, or risk falling afoul of the new laws,\u201d Mr Garcia said. <\/p>\n
\u201cTake the time to understand the new rules and what they mean for your business, make sure cashflows and payroll processes are ready, and get your house in order. <\/p>\n
\u201cPayday Super is coming and you need to be prepared.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"Thousands of young Australians have been ripped off by bosses who forgot or refused to pay superannuation entitlements,…\n","protected":false},"author":2,"featured_media":359992,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,37582,174,175],"class_list":["post-359991","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-newswire-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/359991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=359991"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/359991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/359992"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=359991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=359991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=359991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}