Feb 2019 | The ‘wage theft’ loophole costing Australian workers thousands

Date: 19 Feb 2019 

Source: The New Daily

Australian workers could be losing almost $13,000 in superannuation owing to a loophole that allows employers to hold on to guaranteed contributions for up to four months.

Research conducted by Industry Super Australia (ISA) found that someone working from the age of 20 to the day before their 67th birthday will be $12,475 worse off at retirement if their employer paid their super contributions on a quarterly basis rather than fortnightly, as they miss out on accruing interest.

That figure isn’t insignificant, either.

Based on data published by the Association of Superannuation Funds of Australia (ASFA), $12,475 would equate to 4.6 per cent of the average man’s super balance at retirement ($270,7190), and 7.9 per cent of the average woman’s ($157,050).

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