Ahead of the federal budget the Albanese government is being urged to mandate superannuation payments in line with workers' wages to prevent widespread super theft.
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According to an analysis conducted by Industry Super Australia (ISA), unpaid and underpaid superannuation has cost workers more than $33 billion over the past seven years.
"Only by aligning payment of super and wages will the government protect millions of Australians missing out on what they're owed and falling off the unpaid super cliff," ISA Chief Executive Bernie Dean said.
Because superannuation can be paid quarterly, opportunities for misalignments in pay, whether accidental or intentional, can arise.
With more frequent super payments in line with wage payments, employees have a better chance of noticing and resolving any incorrectly paid or missing super.
The cliff of unpaid super is approaching ever closer for people like Jay, a veteran of the hospitality industry.
Her experience in some of Sydney's most recognised venues couldn't protect her from super theft.
"As far as I was concerned, I was getting paid and I didn't think to check," she told AAP, preferring to be known only by her first name .
"The only indication I got was when I left the job. I was still in contact (with friends at the workplace) and they said 'hey, he's not really paying us super, we think this has been going on a long time, you should check.'"
"Knowing that the business was struggling, I didn't know whether they could be forced to pay. If they had no money, how could they pay?
"It seemed like a bit of a pipe dream, that I should shrug my shoulders and move on. I regret that."
The latest reporting from the Australian Tax Office (ATO) shows that just 15 per cent of unpaid super was recovered between 2013-14, 2018-19 and 2019-20.
These 'dismal' numbers are key to the ISA's recommendations to government.
"The ATO has no excuse but to do better than recover a woeful one in five dollars in underpaid super and should actually start enforcing the law by penalising employers that deliberately dud their employees," Mr Dean said.
A spokeswoman for the tax office said the ATO takes super obligations for employers seriously and encouraged workers to contact them if they believe their superannuation was underpaid or unpaid.
"The ATO reviews every complaint about unpaid super that we get and the earlier we know the greater chance we have to recover unpaid super," she said.
National President of the United Workers Union, Jo Schofield, backs the call for more frequent superannuation payments, to allow workers to pick up on issues sooner.
"Superannuation underpayment is a form of wage theft, something that impacts low-paid workers or those in insecure employment in greater numbers," she said.
"These workers are most reliant upon superannuation contributions for a higher standard of living in retirement and who can least afford to lose their superannuation entitlements."
Hospitality, cleaning and early education were raised by the union as key sectors with superannuation underpayments - all industries dominated by women.
Women already retire with up to a quarter less superannuation than men, and modelling released by ISA revealed that in the 2019-20 financial year, an estimated one million women missed out on $1.3 billion in super payments. That number is set to reach $10.8 billion in lost superannuation over a period of seven years.
"At this federal budget our politicians have an opportunity to end the huge super rip-off undermining the future economic security of many young women and others on lower incomes," Mr Dean said.
The numbers are eye-watering, but unsurprising for Jay.
"It's a terrifying thought to think that I'm losing investments that could grow with time," she said. "When it's individuals it doesn't seem like a lot, but it's a lot to them individually."
Despite being unable to recover her own unpaid super, Jay believes the hospitality sector is changing for the better.
"When I started, it was very much 'this is the way it's going to work, otherwise you're not going to have a job'. That's just not true anymore," Jay said.
"Hospitality is dying for workers, it's always going to. I'm delighted with the younger generation, they're more aware of their rights and push for it themselves, it's great to see."
Australian Associated Press
