WORKERS in the Wimmera are losing thousands of dollars from their superannuation every year through dodgy employer practices.
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New research by Industry Super Australia has found workers in the electorate of Ripon lose $8.56 million annually, while workers in Lowan lose $8.63 million.
ISA chief executive Bernie Dean is urging the government to change the laws that govern when employers pay superannuation in order to plug any leaks in the system.
Currently employers can pay a lump sum into workers' superannuation funds on a quarterly basis, which Mr Dean said made it harder for the Australian Taxation Office to track payments and easier for some employers to underpay or not pay at all.
The ISA is instead calling on the federal government to make superannuation payable on paydays.
ISA research also showed that 70 per cent of workers believe what is written on their payslips and don't check if the super has actually gone into their account, further exacerbating the issue.
"The only way to end Victoria's $1.4 billion super rip off is for the Federal Government makes super payable on payday," he said.
"With little punishment meted out to those responsible for the unpaid super scandal it is time for Ararat's federal and state politicians to act."
Member for Wannon Dan Tehan was contacted for comment but did not respond.
An ATO spokesperson said it takes a 'nudge' approach to getting employers to meet their superannuation obligations.
"In October 2019 we commenced contacting employers who appeared to have not met their SG obligations through a 'nudge' approach of reminder letters and phone calls," she said.
"As we refine our information and more employers begin reporting through STP, we will increase this proactive contact with employers.
"This is designed to ensure employees get their SG entitlements, in full and on time, and as a preventative approach to educate and assist employers to get it right."
Penalties for not paying include having to also pay interest on what should have been paid and an administration fee of $20 per employee per quarter.
"There are also a range of additional penalties on top of the SGC which may be considered and applied," the spokesperson said.
"For example, if an employer lodges their SGC statement late, an additional penalty can be applied by the Commissioner (referred to as a Part 7 Penalty) which may be up to of 200% of the charge payable.
"We can also issue Director Penalty Notices to directors of a company that fails to meet an SGC liability in full by the due date. This means that company directors then incur a personal liability equal to their company's unpaid SGC liability."
The ATO said employees should monitor their superannuation payments through myGov.
"Employees who suspect they aren't being paid their full SG contributions should follow the steps at ato.gov.au/unpaidsuper. We will then investigate the employer and keep the employee updated on our progress," she said.