An estimated 650,000 Australians are diddled by their boss. Time to ask your employers for proof that they are contributing to a super fund in your name?

The Sydney Morning Herald 27 April 2015:

By law, employers have to contribute 9.5 per cent of an employee's salary into their super fund.

However, a report in October by Tria Investment Partners found employer non-compliance amounted to $1.3 billion a year. Those affected by companies that did not allocate a super contribution were, on average, $3750 a year out of pocket, the report found.

In total, $2.5 billion is lost each year, including through the cash economy, sham contracting and businesses that go bust owing employees.

It estimates that 650,000 Australians are diddled by their boss. The worst industries for non-compliance are property services, mining, hospitality and manufacturing.

The report found that a 25-year-old whose super contributions were not paid for five years would lose 14 per cent of their total retirement fund because of compounding factors…..

About $200 million a year is lost by workers at businesses that go into insolvency.

However, Tax Office officials conceded last year that it was often "uneconomical" to chase small, individual amounts.

Association of Superannuation Funds of Australia chief executive Pauline Vamos said that was "disturbing" because the money owed was mainly to low-income earners.

Australian Taxation Office (ATO) page retrieved 27 April 2015:

Compulsory employer contributions

If you’re eligible for compulsory super guarantee contributions, your employer must pay them into a complying super fund.

Eligibility

Generally, you’re entitled to super guarantee contributions from an employer if you’re 18 years old or over and paid $450 or more (before tax) in a month. It doesn’t matter whether you’re full time, part time or casual, and it doesn’t matter if you’re a temporary resident of Australia.

If you’re under 18 you must meet these conditions and work more than 30 hours per week to be entitled to super contributions. If you’re a contractor paid wholly or principally for your labour, you’re considered an employee for super purposes and entitled to super guarantee contributions under the same rules as employees.

How much your employer should pay

If you’re eligible for super guarantee contributions, at least every three months your employer must pay into your super account a minimum of 9.50% of your ordinary time earnings, up to the ‘maximum contribution base’. (Note: prior to 1 July 2013 the rate was 9% and during the 2013-14 financial years the rate was 9.25%)

Checking that your employer is paying the correct super

If you think your employer isn’t paying your super into the right fund, or isn’t paying as much as they’re supposed to, you should ask your employer about it and check how much your super fund has received. If you still think there’s a problem you can lodge an enquiry with us.

Providing your tax file number

You need to provide your tax file number (TFN) to your employer and/or super fund on a Tax file number declaration form. If you don’t, your super fund may take extra tax out of your super contributions.

Choosing a super fund

Most people can choose the super fund they want their employer contributions paid into. If you’re eligible to choose a fund, your employer must give you a Standard choice form so you can make that choice in writing.

Working overseas

If you take up an Australian employer’s offer to temporarily work for them overseas, your employer must continue to pay super contributions for you in Australia. Your employer may be able to apply to the ATO for a Certificate of coverage so neither you nor your employer will have to pay super (or a super equivalent) in the other country.