Some Australian workers on the brink of retirement are being short-changed on their employer superannuation entitlements and might be forced onto the age pension, according to research out today.

Industry Super Australia (ISA) has told a Senate inquiry that, on average, people aged between 60 and 64 might not have received the full 9.5 per cent superannuation payment from their employers.

Based on Australian Tax Office (ATO) data, the research showed people aged between 60 and 64 on salaries between $50,000 and $75,000 who did not receive the correct entitlement could have super balances short-changed by $35,000.

ISA is warning that the shortfall could force some retirees to move on to the aged pension, adding further to the Federal Government's budget problems.

Matt Linden, the head of public affairs at ISA, told the ABC's AM program that the super rip-off by some employers needs greater scrutiny from the Australian Tax Office.

"It's unacceptable that some employers are deliberately dodging their super obligations, but it is disturbing that compliance systems are allowing it to go unchecked year after year," Mr Linden said.

"It leaves government short-changed on tax revenue and affected Australians with little chance of a decent retirement.

"The lower balances also mean retirees need to rely more on the age pension. The impacts are far reaching and the processes and enforcement around unpaid superannuation guarantee must be strengthened".

ATO rejects Industry Super research

But the ATO has rejected the allegations of superannuation underpayment made by ISA.

Deputy commissioner James O'Halloran told the inquiry that the ISA research was based on different methodology to that used by the ATO.

"While we continue to refine our methodology to increase the reliability and to give a high level of confidence, we do believe that the recent industry reports overstate the number of employees who are underpaid," Mr O'Halloran said.

"Even with our access to the complete ATO data file it does not provide sufficient client level information to construct a targeted audit program with the risk of auditing in excess of 50 per cent of employees who are likely to be compliant."

In its submission, the ATO said it conducts regular audits and reviews into super guarantee compliance, with 70 per cent initiated by employee complaints and 30 per cent initiated by the ATO itself.

But the ATO added that in nearly 30 per cent of those cases employers have in fact paid the proper amount of superannuation.

It said, on average, that a shortfall is identified in 10,000 cases, representing 1 per cent of 880,000 employers.

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The inquiry by the Senate Economics References Committee follows revelations late last year that 2.4 million people, or a third of Australian workers, were being gouged by rogue employers who are holding back some superannuation entitlements.

Australian law requires employers to contribute at least 9.5 per cent in superannuation towards every worker over the age of 18 earning more than $450 a month.

ISA says across all ages and all salaries, Australians who have been underpaid had super balances that were $19,709 or 47 per cent lower than those who had received it.

"The disparity in super balances suggest that while unpaid superannuation guarantee is more likely to occur at a younger age, it persists over many years compounding with devastating later life effects," says Matt Linden.

The Senate inquiry is looking at the economic impact of the non-payment of the superannuation guarantee and the role and effectiveness of monitoring by the Australian Tax Office.

Follow Peter Ryan on Twitter @peter_f_ryan and on his Main Street blog.