The analysis of Tax Office and Australian Bureau of Statistics data suggests rogue employers are dodging compulsory superannuation payments. It also suggests the Tax Office is not proactive in identifying employers who are failing to make super contributions on behalf of employees who are unaware they are being dudded.

Employers are required to contribute 9.5 per cent into the super account of every employee over the age of 18 who earns at least $450 per month.

The new analysis by Industry Super Australia and construction industry superannuation fund Cbus, shows that up to 2.4 million or 30 per cent of workers are losing up to four months of entitlements valued at $1489.

NSW and Victoria have the highest numbers of workers who have missed out on superannuation payments.

The report recommends closure of a loophole that allows employers to count employee salary sacrifice contributions towards the amount they are required to pay employees. The loophole means employers are paying employees less than the amount required.

"It is disturbing that nearly one-third of workers eligible for Superannuation Guarantee are being short-changed," Industry Super Australia chief executive, David Whiteley, said.

"Retirement income policies are made on the assumption that, into the future, we'll all have super.

"As pension access tightens and home ownership declines, those missing out on compulsory super stand little chance of a decent standard of living in retirement".



Mr Whiteley said the analysis revealed the apparent failure of the Tax Office  to use its own data on individual taxpayers to identify at-risk employees. This raised questions about a lack of ATO resources to combat the problem of employers failing to fulfil their obligations – especially when individual taxpayers do not realise they are being short-changed.

He said the National Audit Office had recommended the reporting of Superannuation Guarantee figures but these had not been provided in the Australian Taxation Office 2015-16 annual report.

The report recommends the Tax Office be given the resources it needs to identify and recover unpaid superannuation entitlements on behalf of employees. It also suggests that real-time payment, reporting and compliance be introduced to replace 25-year-old rules that allow employers to retain superannuation entitlements for up to four months.

Workers on low incomes and particularly those in the construction, hospitality and cleaning industries were more likely to be missing out on their full benefits.

Cbus chairman Steve Bracks said workers who have put their faith in the system have discovered their super, including extra voluntary contributions, have not been paid into their accounts and is lost when companies are liquidated. Recovery of unpaid superannuation could take up to 10 to 20 years.

"It is not unusual to hear from members who have lodged a complaint with the ATO still waiting for answers, let alone their money, years afterwards," Mr Bracks said.

"Employers who do the right thing by their employees are competing on an uneven playing field against those who don't".

The NSW CFMEU was questioned about the leaking of the private personal details of Cbus members to the union during the recent Royal Commission into Trade Union Governance and Corruption. The commission heard the union used the information to chase up companies allegedly in arrears in paying employee superannuation entitlements to Cbus.

The report found that workers under the age of 30 were more likely to miss out on their superannuation – 37 per cent of 20 to 24-year-olds compared to 23 per cent of people aged 50 to 54.

Small and medium-sized businesses were among those least likely to be paying the full amount of superannuation to employees.

A spokesman for the Australian Tax Office said it takes non-payment by employers of superannuation guarantee seriously.

"We investigate all reports of non-compliance made to us," the spokesman said.

"We have over 150 staff who specifically focus on [superannuation guarantee] compliance and dealing with reports of non-compliance.

"Our ongoing compliance program identifies that employers who do not meet their obligations to report and pay [superannuation guarantee] for their employees often do so for a range of reasons ranging from inadvertent mistakes to intentional avoidance."

Each year the ATO receives about 20,000 reports from people who believe they have not had their superannuation paid by their employer.

"We examine every report and where suitable we follow up by making contact with the employer to seek confirmation, and if necessary we conduct audits and apply penalties," the spokesman said.

"Last financial year we raised $670 million in [superannuation guarantee, including penalties, from a range of ATO compliance review and audit activities."