Yahoo Finance The Aussies missing out on $400 million a year
Uber, Deliveroo and other gig workers could be $29,000 better off in retirement.
Thousands of Aussie gig workers are missing out on $400 million a year in superannuation contributions.
A new report by Industry Super Australia found the average gig worker could have up to $29,000 more in their retirement nest egg if super was paid.
An estimated 275,000 delivery drivers, disability carers, IT professionals, education workers and other gig workers are missing out on super contributions because they are defined as independent contractors.
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Industry Super Australia chief executive Bernie Dean said being a gig worker shouldn’t mean missing out on the opportunity to save for retirement.
“Paying gig workers super isn’t just the right thing to do, it makes economic sense because they’ll be more self-sufficient in retirement and less reliant on the age pension, which we all pay for through taxes,” Dean said.
“These workers are critical to caring for our elderly, delivering food and driving us home, they have every right to share in the benefits of what is meant to be a universal saving system.”
According to the report, a typical transport and food-delivery driver misses out on $1,900 super contributions a year when working an average of 14.5 hours a week, earning $24 an hour.
This is estimated to grow to $17,200 at retirement if the worker spends three years in the industry, and $28,700 if they spend five years.
Industry Super Australia said this was becoming more important as the gig workforce grew. A 2019 survey of 14,000 people found 7 per cent of Aussies were in on-demand work and 13 per cent had done digital-platform work in the past.
More than half of Aussie gig workers were under 35, meaning they were missing out on decades of compounding super earnings.
The government has said it will introduce legislation to give the Fair Work Commission new powers to set minimum standards for gig workers, including minimum pay.
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