Australians who set and forget their superannuation may not realise if their employer is failing to pay out their entitlements, with the latest data showing workers are missing out on billions.

Australian Taxation Office figures for the past financial year show a record $5.2 billion in super was unpaid, with $1.4 billion unlikely to be repaid because the business has gone bust.

Super Members Council executive director of strategy and insights Matt Linden said it can be difficult for workers to know where their employer has failed their legal super obligations.

“At the moment it is largely reliant on individual employees to work out whether or not they’ve been underpaid and then take action,” he said.

Double check

One way to make sure your super is getting paid is to check your pay records and reconcile them with outstanding balances in your superannuation account, requiring ongoing attention.

“It is really important that people set up an online account with their super fund, and that they check in on it regularly to make sure that they’re receiving super contributions,” Linden said.

If you suspect you have been underpaid your superannuation entitlements, Linden said your first step should be to ask your employer about the issue and after that your superannuation fund.

“In the first instance, just check with their employer or payroll if, in fact, a payment doesn’t turn up,” he said.

“You can talk to their superannuation fund and get advice about what to do.”

Tools online

The ATO also has public tools online that help Australians work out what their super entitlements should be based on their wages.

But more broadly, Linden said there’s need for the ATO itself to play a larger role helping prevent unpaid super and take action where it happens.

SMC analysis of the figures shows the total amount of unpaid super over the past three years is about $18.6 billion, with fears the ATO is detecting less than a quarter of underpayments.

“The figures are shockingly high, and should be a cause for concern for both employees, but also to employers and policy makers,” he said.

“If people are not receiving the correct super contributions, then they’re reaching retirement with far less money, which means an increased cost for the age pension.”

Technology-first approach

New laws that will require workers to make superannuation payments at the same time as wages (pay day super) are set to help regulators prevent unpaid super and catch bosses ripping off workers.

The changes will make it easier for employees and the ATO to identify where their superannuation is going unpaid.

Linden said the ATO needs to lean into a technology-first approach where businesses who don’t pay out super are flagged in its systems.

“The ATO can be really smart about this,” he said.

“It doesn’t necessarily require armies of people, it just requires good technology that will put up the red flags sure if super payments are late, and prompt employers to to correct that.”