One in four Northern Territory workers have been underpaid super - missing out on almost $55 million in a year, new research shows.
Super Members Council analysis of tax file data shows more than 25,000 NT workers were short-changed an average of $2,110 each in 2021-22. Over five years, NT workers lost $300 million.
Unpaid super climbed to $172 million over five years in the Darwin-based electorate of Solomon, while workers in Lingiari, which covers the rest of the Territory, were underpaid $120 million over five years.
Unpaid super denies thousands of NT workers the ability to save for retirement and can cost the average worker more than $30,000 from their final retirement nest egg.
The Australian Government has promised reforms that would mean super must be paid in sync with a worker’s wages – instead of at least once a quarter.
This crucial reform - to be introduced from July 2026 and long-championed by the profit-to-member super sector - will modernise the super payment system and dramatically help to stem unpaid super.
Payday super will lead to almost 9 million Australians getting their super contributions more frequently throughout their working life. SMC analysis shows the average worker could be $7,700 better off in retirement with payday super because the investment returns accrue and compound sooner.
Super Members Council CEO Misha Schubert said payday super laws would help all Australians get the full benefits of our transformative retirement system.
“Paying super on payday will modernise the super system to reduce underpayments for Northern Territory workers. This reform will be fairer for both workers and employers,” Ms Schubert said.
"Passing payday super laws this Parliamentary term is crucial to ensure Territorians who are currently being short-changed are paid their super on time and in full."
“Unpaid super leaves people poorer when they retire. A unified push from Government, all MPs and Senators, the super industry, employers and workers are needed to stamp it out.”
Shifting to payday super will level the playing field for all businesses – so employers who pay their workers super on time and in full are not undercut by those who have not.
It also creates smoother cashflow management for small business. Quarterly super payment allows large super liabilities to accrue and creates an administrative burden from time-consuming reconciliations, which can be prone to miscalculations leading to incorrect payments.
New SMC analysis released in a report on unpaid super in Australia this year found:
- In one year, 2.8 million Australians missed out on $5.1 billion in legal super entitlements (2021-22)
- Over 9 years, Australians have missed out on $41.6 billion in unpaid super
- The average affected worker missed out on $1,800 in super in a year – which could mean more than $30,000 less in retirement savings for a typical worker
Unpaid super in Northern Territory by federal electorate during 2021-22
|
Electorate |
People underpaid |
Percentage of people underpaid |
Average underpayment |
Total ($M) |
|
Solomon |
14,400 |
26% |
$2,070 |
$29.9 |
|
Lingiari |
11,450 |
26% |
$2,140 |
$24.6 |
|
NT total |
25,850 |
26% |
$2,110 |
$54.4 |
Source: Super Members Council analysis of ATO 2 per cent sample file, 2021-22, and ABS data.
Total super underpayments over 5 years in the Northern Territory ($m)
|
Electorate |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
Total ($M) |
|
Solomon |
$43.6 |
$34.2 |
$30.3 |
$33.7 |
$29.9 |
$171.7 |
|
Lingiari |
$28.3 |
$24.1 |
$21.8 |
$21.1 |
$24.6 |
$119.8 |
|
NT total |
$72.0 |
$58.3 |
$52.2 |
$54.8 |
$54.4 |
$291.6 |
Source: Super Members Council analysis of ATO 2 per cent sample file, 2021-22, and ABS data.
Contact details:
Matt Read: 0432 130 338, mread@smcaustralia.com