Super debt and write-offs figures increases: Nick Sherry
The recent Superannuation debt figures owed by employers to employees and written off monies owed to employees is increasing according to figures obtained by Labour at Senate Economic Estimates Hearings.
According to Nick Sherry, Shadow Minster for Superannuation, Intergenerational Finance: Banking & Financial Services, debt owed has jumped from $122.46m at June 30 2003 to $299.69m as of March 31 2007. Far worse is the jump in debt -written off- increased from $3.8m in 2000-01 to $55m in 2004-05.
This owed but unpaid super (as a result of employer bankruptcy) will never be received by thousands of employees. Despite super being a statutory entitlement - deferred wages, it is not protected like other unpaid entitlements by the Government Employee Entitlement Redundancy Scheme (GEERS).
After 11 long years the Howard Government has still failed to effectively tackle the issue and improve collection and compensation. Finally as of 1 July 2007, they have adopted Labour policy and removed the secrecy provision that prevented the regulator, the Australian Tax office (ATO) from reporting to employees when their super would be paid to their fund.
It is low and middle income employees who are missing out. For a young person in their 20’s unpaid super of $1,000 would be worth $11,000 in current dollar value at age 65.
26-Jun-2007