Superannuation is one of the most important investments you can make for your future. It is a way of saving money for your retirement, and it can also provide you with tax benefits and insurance cover. However, not all companies are paying their right portion of superannuation to their employees. This can have a substantial influence on your retirement funds and your financial stability.
The Super Guarantee (SG) is the minimum amount of superannuation that your employer must pay into your super account on your behalf. The current SG rate is 11% of your ordinary time earnings, and it will increase to 12% by 2025. The SG payments should show on your payslip, but they might not be actually paid into your super account. This is called superannuation guarantee charge (SGC) shortfall, and it is illegal.
If you believe that your employer is underpaying you for SG or is not paying it at all, you should take immediate action. Here are some steps you can follow to protect your super:
– Check your payslip and compare it with your super transactions or the statement from your super account. You can acquire a statement by contacting your super fund or by logging into your super account online. Within 28 days of the end of each quarter (March, June, September, and December), you should see the SG payments from your employer in your account. To make it simple to reconcile your payments, there is a proposed law that requires the employer to pay at the same frequency as pay.
– If you notice any discrepancies or missing payments, talk to your employer first. They might have made a mistake or have a valid reason for not paying you the SG. Try to resolve the issue with them directly and keep a record of your communication.
– If you are not satisfied with your employer’s response, or they refuse to pay you the SG, you can report them to the Australian Taxation Office (ATO). The ATO is responsible for enforcing the SG law and can help you recover your unpaid super. You can use their online tool to lodge an enquiry or complaint about your employer’s SG obligations. You will need to provide some details about yourself, your employer and your super fund.
– The ATO will look into your case and get in touch with you when it is finished. They will send them a notice to pay the SGC shortfall, plus interest and penalties, if they discover that your employer owes you any SG. The ATO will also transfer the money to your super account or pay it to you directly if you are eligible.
There are other steps you can take to maximise your superannuation and get ready for retirement in addition to checking your SG payments. For example, you can:
– Choose a suitable super fund that meets your needs and preferences. You can compare different funds based on their fees, performance, investment options and insurance cover.
– Consolidate your super accounts if you have more than one. This can help you save on fees and avoid losing track of your super.
– Make voluntary contributions to boost your super balance. You can make extra payments from your pre-tax or after-tax income, depending on your circumstances and goals. You may also be eligible for the Government Co Contribution.
– Seek professional advice from a licensed financial planner like Funded Futures if you need help with planning your superannuation strategy. We can help you assess your situation, set realistic goals and develop a strategy to reach your retirement goals.