Do your bit to plug super’s $2.85bn gap

Check that your employer is making the correct contributions

T he tax office last month released its estimate of the gap in superannuation guarantee (SG) payments by Australian employers – that is, the difference in the amount that should have been paid compared with what was actually paid.

The ATO estimates the gap is 5.2% ($2.85 billion) of the total estimated $54.78 billion in super that employers were required to pay in 2014-15.

An estimated 650,000 Australians each year are affected by SG non-compliance.

By law your employer is required to pay 9.5% of your salary into your superannuation account, at least quarterly.

If they are not, you could face negative consequences when you reach retirement: people affected by SG non-compliance lose on average around $3750 a year and for a 25-year-old a oneoff loss of this size could equate to a $13,500 loss at retirement.

If you have any doubts about whether your super is being paid correctly, these steps can help you resolve the issue:

1 Speak to your employer

Ask your employer if they have been making SG contributions for you and, if so, how much they have been paying and which account details they are using. If your contributions have been going into a fund that you no longer use or check, you may wish to consolidate your super. 2 Contact your super fund

If you do not have your most recent member statement, you can contact your super fund to find out the timing and amount of your last payment. You can also create an account on the tax office’s myGov service to see details of all your super funds, including any that you may have lost track of or forgotten about. 3 Lodge an inquiry with the ATO If you have checked with your employer and fund, and are still not sure that your employer is paying you enough (or any) super, you can lodge an unpaid super inquiry with the tax office.

You will need to provide your employer’s ABN and contact details, along with information on your current employment arrangement and details of the period of lost super. The ATO will investigate and provide you with updates via letter.

Glen McCrea, chief policy officer, the Association of Superannuation Funds of Australia