Australian women to receive $1.3 billion less in Superannuation, says New Report

According to a recent report, a little-known law from the 1990s caused women in Australia to get less paid by $1.3 billion in superannuation over a year.

A report by Industry Super stated, that one in five women in Australia won't receive the complete amount of superannuation that was due in the financial year of 2019-2020.

The report also mentioned the losses that women faced in different categories.

• Between the ages of 20 and 39, one in four women lost an average of $1110.
• Under 40% of young women lost $570 with annual incomes under $25,000.
• In the working sectors where female workers were high, about a quarter of women are less paid by up to $40,000 over the course of their lifetimes or about 10% of savings.

The report claims that the main reason is the shortfall on a rule passed in the 1990s that permits employers to pay super quarterly basis instead of paying in each cycle.

Most of the workers make payments more frequently, and the organization’s failure to do so may end up costing the employees more in the long term if superannuation funds are lost. The employees then get lesser interest which would have compounded over time.

Super underpayments can have a great effect on anyone's income but women are more frequently trapped in this because of losing out on money at the start of their careers.

The sectors which are most likely to be underpaid are professional workers, administrative workers, and personal services workers in industries like nursing, childcare, and aged care.

Even if the contributions mention on the payslip still the amount is not credited to the accounts.

The report suggests that to combat these situations, the employees should pay their contributions in proper pay cycles. They can also track their payments which should be a total of 10.5% of their income.

Women will get benefits by mandating the payment of super with wages. Over the next four years, women can get an additional $300 million in super contributions.

Women can also make use of a calculator tool like Industry Super or Australian Taxation Office (ATO) if they have any doubts about missing the super.

They need to compare the calculator’s amount with the contributions deposited into their superannuation account.

The employer can get the exact information of these contributions with their super fund. It will be present in the latest member statement from the super fund or in ATO online through an individual's myGov account. Employees can ask regarding any issues they face about the difference in amounts with their employer.