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BoQ sets aside a bag of money for underpaid staff

Business

The Bank of Queensland has underpaid its staff by as much as $11 million but is yet to get a full picture of the error.

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The company announced it had already made a $2.4 million payment to the Australian Taxation Office as part of the superannuation guarantee amnesty, but it would also make a further $8.6 million provision in its accounts for the underpayment.

“The impact of the errors remain under investigation with further work to be done to determine the full impact,” the bank said.

“BoQ has made a full and unreserved apology to people affected by these issues and will ensure people are remediated fully as a matter of priority as it completes a broader wage analysis and review for enterprise bargaining employees.”

The initial review found irregularities in superannuation payments for people working under an EA struck for 2010, 2014 and 2018.

The company also said its 2020 COVID-19 provisioning would be about $175 million, pre-tax.

“This includes a COVID-19 related collective provision expense of $133 million which is based on updated RBA data, analysis of customers on the banking relief package and their likelihood of recovery, and a significant exposure review,” the bank said.

Managing director George Frazis said the revised provision reflected the anticipated lifetime losses on the current portfolio relating to impacts from COVID-19.

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