Cairns Regional Council – Are you getting the right Super?
Superannuation is one of the many benefits that workers and their Unions have fought for. As your ally in the workplace, The Services Union will always be here to provide support for members whose retirement nest-egg is incorrectly paid. Our Union understands that some Cairns Regional Council staff have only been receiving employer contributions of 9.5% despite being eligible for 12%. Additionally, the Council has not been making the 6% employee deductions towards contributions for those employees.
The Services Union has made the Council aware of this error and that it is contrary to the Local Government Act 2009.
The compounding impact of missing out on the extra 2.5% employer contribution and 6% employee contribution is significant. Not only will affected employees miss out on the extra amount upon retirement, the 6% employer contribution that should have gone into their superannuation has been paid into wages and taxed as such.
In addition to demanding that the Council correct its errors in this regard, our Union has argued that requiring affected employees to “pay back” superannuation contributions paid to them as wages would cause further hardship because it would likely exceed the contribution threshold and be taxed accordingly – causing a double tax loss for the employee. We await the Council’s response.
Please check your payslips to ensure that your superannuation contributions are being paid correctly. Members know that we are always by your side if you have any concerns on this – or any other – matter. If you work with someone who’s not yet a member, remind them of the support you can access. Joining is easy at www.theservicesunion.com.au/member-information/join/join-now.