Former Prime Minister Paul Keating loved this quote of his long-time mentor former NSW Premier Jack Lang. I was reminded of its currency and utility recently, when I read that the Association of Superannuation Funds of Australia (ASFA) had made an (overdue) entrance to the public debate about the costs and benefits of the emerging “gig” economy — let’s be honest, it’s mainly costs.
In another example of wage theft, the Australian Tax Office (ATO) has revealed that employers have failed to pay superannuation for their staff by an average of $2.81 billion every year between 2009 and 2015: a total of $17 billion.
The worst offenders were small and medium businesses in the construction, retail, food and accommodation sectors.
The ATO has been investigating "the superannuation guarantee gap" — the difference between the 9.5% superannuation guarantee payment required by law and the contributions employers actually make.
Superannuation should provide a comfortable retirement for the several million workers who signed up to the 1983–95 “superannuation revolution” by the ACTU and Hawke-Keating Labor governments. But what should be in a super account to provide a comfortable retirement for this “pioneer” generation?
Australia's four big banks plus AMP are ripping off the country's workers with huge fees charged on their superannuation investments, a recent study has revealed.
New research carried out by Rainmaker for Industry Super Australia, a mainly union-backed body, shows that the retail super funds, largely operated by the big banks, absorb about half of all fees charged in the superannuation system, despite holding only 29% of retirement savings.