Federal Labor has been defeated in its bid to block an amnesty for employers it says have robbed their workers of superannuation entitlements.
Legislation has passed the lower house which would allow employers to avoid penalties if they admit they've not paid employees their full entitlements and pay the money in full and with interest.
The 12-month amnesty is expected to result in 50,000 people receiving a share of $230 million in superannuation, Financial Services Minister Kelly O'Dwyer says.
But shadow treasurer Chris Bowen says no amnesty should apply to an Australian law that has been in place for 25 years.
"We happen to think that non-payment of the superannuation guarantee is a serious breach of the law, should be dealt with accordingly and providing an amnesty ... is exactly the wrong move," he said.
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Ms O'Dwyer defended the move, saying it would not leave workers worse off and employers would only get the benefit if they voluntarily admit their wrongdoing and are not already under investigation.
The incentive for employers to come forward is that they won't have to pay fees and penalties normally given to the government, she said.
Payments made during the amnesty period are also tax deductible.
The opposition sought to amend the government legislation to remove the amnesty but were defeated 57 to 75.
