1.1        For most Australians, superannuation is compulsorily deferred wages. It is intrinsically tied to their employment. Without a job, there would be no superannuation.

1.2        It follows that unpaid superannuation is not working capital for businesses. It is employee's money that should be disbursed as regularly and consistently as employees turn up for work. It should be that simple.

1.3        So it makes little sense that the payment of superannuation is not legislatively aligned with the payment of wages; and that the non-payment of superannuation is not seen as being as heinous as the non-payment of wages.

1.4        In the digital age, with fully electronic payrolls and banking, there is no excuse for employees not to pay the superannuation guarantee each and every payday. While this bill makes some inroads towards addressing the imbalance between the treatment of superannuation and the treatment of wages, it doesn't finish the job.

1.5        The Australian Greens support a comprehensive range of measures designed to address the mismatch between superannuation and wages. The Senate Economics References Committee 2017 report, Superbad – Wage theft and non-compliance of the Superannuation Guarantee explored the problem extensively and identified the relevant issues. But even it fell short of making some simple and unequivocal recommendations that would help ensure employees get paid their superannuation.

Recommendation 1

1.6        That legislative changes be made to remove the $450 threshold; and require superannuation be paid to all employees regardless of their age, hours of work or wage rate.

Recommendation 2

1.7        That legislative changes be made to require superannuation to be paid in alignment with regular pay cycles, or on a monthly basis, whichever is the lesser period.

Senator Peter Whish-Wilson
Senator for Tasmania

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