Superannuation is a compulsory part of an employees salary package. Some schemes are better than others, but a usually accepted figure is 9% per annum. This figure is required to be put aside by the employer on an ongoing basis, every predefined period into the employees superannuation fund / account. The failure comply is punishable by law, as there are no excuses, as every business owner is aware of this fact.
A recent case come to mind, that one of a professional service, a Chiropractor’s clinic in Melbourne’s Collins St, failed to contribute to an employees super fund. The employee was not aware of this fact, and upon their departure, this was made evident.
The holding on to the super fund by the employer is illegal.
Funds held by the employer could be used to gain profit, e.g. in the stock market.
The employer was subsequently fined, and all interest paid back to the employee.
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