A super fund lobby has called for gig workers to be included in the system. 

Industry Super Australia is urging the Albanese government to introduce superannuation entitlements for gig economy workers as part of its upcoming regulation of the sector, in a move that could see an additional $29,000 added to the average gig worker's retirement funds. 

The proposal comes in the wake of a new report by Industry Super Australia, which found that around 275,000 delivery drivers, disability carers, IT professionals, education workers and others in the gig economy missed out on $400 million in super contributions annually because they are classified as independent contractors.

Industry Super Australia has joined unions and gig platforms in meeting Workplace Relations Minister Tony Burke in recent weeks to lobby on the government’s proposed laws for “employee-like” workers due later this year. 

While initial discussions have focused on minimum rates, the 11 per cent super guarantee is also expected to feature significantly in the consultations as it is one of the benefits most closely associated with employment.

Industry Super Australia CEO Bernie Dean says that gig workers “critical” to care industries and deliveries have “every right to share in the benefits of what is meant to be a universal saving system.” 

Dean argues that paying gig workers super makes economic sense because they will be more self-sufficient in retirement and less reliant on the aged pension, which is funded by taxpayers.

However, this move could also increase pressure on gig platforms, as Deliveroo's recently collapsed Australian arm incurred losses of over $120 million last year, with the extra 11 per cent cost adding further to the expenses.

According to the report, the average transport and food delivery driver misses out on $1,900 in super contributions annually while working 14.5 hours a week on an hourly rate of $24.

The report suggests that such contributions would grow to $17,200 at retirement if the worker spent three years in the industry and $28,700 if in gig work for five years. 

For carers, expected to eventually form the biggest part of the gig sector through platforms like Careseekers, super could add $1,100 a year when working the average 8.6 hours a week, $10,800 at retirement after three years, and $17,500 after five years.

The report argues that super, even if small, would make a big difference, given that the typical gig worker is young and would enjoy decades of compounding earnings. 

A 2019 academic survey, with over 14,000 responses, found that more than half of gig workers were under 35 years of age.

The government has proposed that the Fair Work Commission should have the power to determine the entitlements, but gig platforms want legislation to limit the scope of the commission’s powers.