Not-So-Super.
Debbie Morrison • November 2, 2020

Not-So-Super.


Why super non-compliance is a serious issue for Australian employers.

Compulsory employer superannuation contributions are nothing new. They were actually introduced by the Keating Government way back in 1992, yet many employers continue to fall short of their super obligations each year, often unknowingly. Could you be one of them?


The Federal Government has been concerned about the impact of super non-compliance for some time, with the ATO estimating the shortfall between what employers should be paying their employees in super and what is actually paid, currently runs well into the billions of dollars each year. It’s a position backed up by separate research conducted by Industry Super Australia.


The super spotlight intensifies

The size of Australia’s ‘super shortfall’ came into sharp focus following the release of an often-damning 2017 report into Superannuation Guarantee Non-compliance, prepared for the Minister for Revenue and Financial Services. Coupled with several high-profile cases of employees being underpaid in the media – including businesses owned by Masterchef host, George Calombaris, the (now defunct) food delivery operator Foodora and retail cosmetics chain Lush which admitted to $2 million of underpayments affecting more than 5,000 of its staff – there onus has never been stronger on employers to get it right.


Increased policing and penalties

The ATO has been quite vocal of its intent to step up policing of employers to ensure proper super compliance, while employees are also increasingly raising their concerns directly with the Fair Work Ombudsman, with more and more cases ending up in court. Penalties for non-compliance can be severe too, including heavy fines and even 12-month jail terms for directors found guilty of breaches. This means it’s essential to understand – and meet – your employer super obligations. As the saying goes, ignorance is no excuse.


Employer amnesty?

Whilst it’s yet to pass through the Senate, it’s worth noting moves are currently afoot in Canberra to provide a 12-month Superannuation Guarantee Amnesty. This would provide a one-off opportunity for Australian employers to correct any past super guarantee shortfalls without penalty. As an added incentive, catch-up payments made during the amnesty period will also be tax deductible. You can find out more on the ATO website.


How to correct an underpayment

Underpayments can happen for all manner of reasons. But regardless of why, if any of your employees haven’t received their correct super entitlements, it’s in your best interests to rectify the situation as soon as possible. To help you do this, the Fair Work Ombudsman provides a step-by-step guide on how to do it here.


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Some key things to remember

 

  • Compulsory employer contributions are currently 9.5% of employee earnings
  • Employers are legally required to pay superannuation to every employee over the age of 18 earning more than $450 gross a month
  • Superannuation is required to be paid within 28 days of the end of each quarter
  • It doesn’t matter if an employee works casual, part-time or full-time hours – they’re still entitled to super
  • Contractors may also be eligible for super, so be sure to check
  • Small businesses account for around 70% of reported superannuation guarantee non-compliance with cash flow problems often cited as the major reason.

 


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A group of business people are walking in front of a city skyline.
By John Elliott July 18, 2025
Australia’s FMCG sector is confronting a leadership crisis. CEO turnover is accelerating, succession pipelines are underdeveloped.
By John Elliott June 26, 2025
You don’t hear about it on the nightly news. There’s no breaking story. No panic. No protests. Just rows of vegetables being pulled out of the ground with no plan to replant. Just farmers who no longer believe there’s a future for them here. Just quiet decisions — to sell, to walk away, to stop. And if you ask around the industry, they’ll tell you the same thing: It’s not just one bad season. It’s a slow death by a thousand margins. 1 in 3 growers are preparing to leaveIn September 2024, AUSVEG released a national sentiment report with a statistic that should have set off alarms in every capital city: 34% of Australian vegetable growers were considering exiting the industry in the next 12 months. Another one-third said they’d leave if offered a fair price for their farm. Source: AUSVEG Industry Sentiment Report 2024 (PDF) These aren’t abstract hypotheticals. These are real decisions, already in motion. For many, it’s not about profitability anymore, it’s about survival. This isn’t burnout. It’s entrapment. Behind the numbers are people whose entire identity is tied to a profession that no longer feeds them. Many are asset-rich but cash-poor. They own the land. But the land owns them back. Selling means walking away from decades of history. Staying means bleeding capital, month by month, in a system where working harder delivers less. Every year, input costs rise, fuel, fertiliser, compliance. But the farmgate price doesn’t move. Or worse, it drops. Retail World Magazine reports that even though national vegetable production increased 3% in 2023–24, the total farmgate value fell by $140 million. Growers produced more and earned less. That’s not a market. That’s a trap. What no one wants to say aloud The truth is this: many growers are only staying because they can’t leave. If you’re deep in debt, if your farm is tied to multi-generational ownership, if you’ve invested everything in equipment, infrastructure, or land access, walking away isn’t easy. It’s a last resort. So instead, you stay. You cut your hours. Delay maintenance. Avoid upgrades. Cancel the next round of planting. You wait for something to shift, interest rates, weather, prices and you pretend that waiting is strategy. According to the latest fruitnet.com survey, over 50% of vegetable growers say they’re financially worse off than a year ago. And nearly 40% expect conditions to deteriorate further. This isn’t about optimism or resilience. It’s about dignity and the quiet erosion of it. Supermarkets won’t save them, and they never planned to In the current model, supermarket pricing doesn’t reflect real-world farm economics. Retailers demand year-round consistency, aesthetic perfection, and lower prices. They don’t absorb rising input costs, they externalise them. They offer promotions funded not by their marketing budgets, but by the growers’ margins. Farmers take the risk. Retailers take the profit. And because the power imbalance is so deeply entrenched, there’s no real negotiation, just quiet coercion dressed up as "category planning." Let’s talk about what’s actually broken This isn’t just a market failure. It’s a policy failure. Australia’s horticulture system has been built on: Decades of deregulated wholesale markets Lack of collective bargaining power for growers Retailer consolidation that has created a virtual duopoly Export-focused incentives that bypass smaller domestic producers There’s no meaningful floor price for key produce lines. No national enforcement of fair dealing. No public database that links supermarket shelf price to farmgate return. Which means growers, like James, can be driven into loss-making supply contracts without ever seeing the true economics of their product downstream. But the real silence? It’s from consumers. Here’s what no one wants to admit: We say we care about “buying local.” We say we value the farmer’s role. We share those viral posts about strawberries going unsold or milk prices being unfair. And then we complain about a $4 lettuce. We opt for the cheapest bag of carrots. We walk past the "imperfect" produce bin. We frown at the cost of organic and click “Add to Cart” on whatever’s half price. We’re not just bystanders. We’re part of the equation. What happens when the growers go? At first, very little. Supermarkets will find substitutes. Importers will fill gaps. Large agribusinesses will expand into spaces vacated by smaller players. Prices will stay low, until they don’t. But over time, we’ll notice: Produce that travels further and lasts less. Fewer independent growers at farmer’s markets. Entire regions losing their growing identity. National food security becoming a campaign promise instead of a reality. And when the climate throws something serious at us, drought, flood, global supply shock, we’ll realise how little resilience we’ve preserved. So what do we do? We start by telling the truth. Australia is not food secure. Not if 1 in 3 growers are planning to exit. The market isn’t working. Not when prices rise at the shelf and fall at the farmgate. The solution isn’t scale. It’s fairness, visibility, and rebalancing power. That means: Mandating cost-reflective contracts between retailers and suppliers Enabling collective bargaining rights for growers Building transparent data systems linking production costs to consumer prices Introducing transition finance for smaller producers navigating reform and climate pressure And holding supermarkets publicly accountable for margin extraction But more than anything, it means recognising what we’re losing, before it's gone. Final word If you ate a vegetable today, it likely came from someone who’s considered giving up in the past year. Not because they don’t care. But because caring doesn’t pay. This isn’t about nostalgia. It’s about sovereignty, over what we eat, how we grow it, and who gets to stay in the system.  Because the next time you see rows of green stretching to the horizon, you might want to ask: How many of these fields are already planning their last harvest?