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Unpaid Superannuation

Obligation to Pay Super

Employers have an obligation to pay super on behalf of their eligible employees, in addition to wages and salaries.

All employees are entitled to be paid super by their employer including casual employees providing that they: –

  1. earn more then $450 (before tax) in a single calendar month and they are at least 18 years old; or
  2. they work more than 30 hours per week and are under 18 years old; or
  3. they are employed as a domestic / private worker.
Failure to Pay Super

Despite the requirement, there are instances where your employer may fail to pay super on your behalf.

Your should regularly check your super balance to ensure your employer is paying your super and is the correct amount.

If you believe your employer has failed to pay your super or the correct amount, you can report this to the Australian Taxation Office (ATO). The ATO has power to investigate unpaid super.  However, you may first wish to raise the issue with your employer.

Employers who do not pay the correct super contributions by the due dates may be required to pay the shortfall amount, interest on that amount (currently at 10% per annum) and an administration fee.

Further, a director of a company that fails to meet super guarantee charge liability in full by the due dates automatically become personally liable for a penalty equal to the unpaid amount.

The ATO may issue a penalty notice (‘notice’) to a director of a company directing them to pay the penalty.  Failure to comply with a notice can result in a fine up to $10,500 or up to 12 months imprisonment.

If you or someone you know requires legal advice about any matter raised in this article, please contact us on (07) 5458 6855 or email mklein@kleinlegal.com.au.