Analysis of the 2019-20 tax file conducted by Industry Super Australia (ISA) has shown a staggering one in five women around the country are being underpaid super, with younger workers in lower-income roles particularly worse off.
The underpayments have cost a collective $10.9 billion over seven years – a “crushing financial blow”, Super Australia advocacy director Georgia Brumby said.
“Unpaid super is depriving one million women a year the chance to save for a financially secure future,” she said.
“It is a crushing financial blow that many women – who are still retiring with a third less super than men – won’t recover from and can wipe out 10 per cent of their savings.”
The data shows that in “feminised industries” such as child and aged care, hospitality and personal services, about a quarter of female staff are being underpaid the super they’re owed.
For some people, it can mean losses of up to almost 10 per cent of their savings.
The research found almost 40 per cent of women in their 20s who earn under $25,000 were low-balled, which on average could mean missing out on up to $570 a year.
A total of one in four women under 40 have also been “ripped off”, according to the data.
But Brumby says there are ways employers can combat the issue so that all staff are paid what they’re owed.
“Aligning payment of super and wages is the right thing to do by workers, boosts government revenue, lifts investment returns and puts all employers on a level playing field,” Brumby said.
“Paying super on payday will help women claw back more super now, while the government is unable to commit to other equity measures like paying super on paid parental leave.”
As it stands, women nearing retirement already have about a third less super than men and are more likely to earn less than their male counterparts.
