Labor plans to phase out $450 Super Guarantee threshold

Labor has announced it would phase out the $450 minimum monthly threshold to receive Super Guarantee contributions, as part of a broader women’s super security package.

“Too many Australian women retire in poverty,” says a statement by Labor.

“A Shorten Labor Government will help women plan for a secure financial future, investing $400 million to strengthen Australia’s superannuation system and boost women’s superannuation balances.”

“Labor knows that closing the gender gap on superannuation is absolutely critical to Australian women having dignity and certainty in retirement.” Read more...

Real problem with small super accounts is $450 SG threshold: CAANZ

The real problem with small superannuation accounts is the $450 monthly threshold to receive Superannuation Guarantee, which should be “dramatically” raised according to the accounting body Chartered Accountants Australia & New Zealand (CAANZ).

The Government announced in the 2018 Budget a number of measures aimed at reducing and limiting the erosion of low super balances, including caps on fees and opt-in insurance, which CAANZ said was commendable.

However these changes fail to address what CAANZ says is the main issue – the $450 threshold for SG payments. Read more...

Super Guarantee $450 threshold creates ‘underclass’ of workers

The minimum earnings threshold to receive Superannuation Guarantee payments creates an ‘underclass’ of workers, says the Association of Superannuation Funds of Australia (ASFA).

ASFA says the “biggest losers” are those men and women working in the sales, community and personal service roles who earn less than $450 per month – the threshold for most workers to receive Super Guarantee payments.

The organisation said there is also substantial numbers of workers affected among Australia’s male labourers and females working in clerical and administrative roles. Read more...

Minimum Super Guarantee threshold disadvantaging Aboriginal peoples

The $450 monthly income threshold to receive Superannuation Guarantee payments disadvantages Aboriginal and Torres Strait Islander peoples and should be removed, says the Indigenous Superannuation Working Group (ISWG).

Under current rules employers are not required to pay Super Guarantee to employees over the age of 18 if they earn less than $450 in a month.

The ISWG points to ABS data which estiamtes 220,000 Australian women and 145,000 men are missing out on about $125 million of superannuation contributions each year due to the threshold. Read more...

Super Guarantee should be for everyone, abolish $450 threshold: ASFA

Superannuation should be for everyone, says the Association of Superannuation Funds of Australia (ASFA), which is calling for the minimum threshold for receiving Super Guarantee to be abolished.

ASFA says the $450 a month wage threshold to receive Super Guarantee (SG) means 220,000 women and 145,000 men are missing out on around a total of $125 million in super contributions each year.

“Low income Australians need SG too, to help put them on the road to comfort in retirement,” said ASFA, noting that the threshold particularly affects women who work casual or part-time jobs with more than one employer. Read more...

$450 SG threshold a barrier preventing women from a dignified retirement

The $450 monthly threshold to receive Superannuation Guarantee is a barrier preventing women from reaching a dignified retirement and should be removed, says Australian Institute of Superannuation Trustees (AIST) and Women in Super.

Data from an Essential Media poll, commissioned by AIST, suggests 18% of women have a job that pays less than $450 a month.

“This is nearly twice the number of men affected by the threshold limit, with the highest proportion of women affected between the ages of 18 and 35 years old,” said AIST. Read more...

90% of workers unaware of $450 threshold for Super Guarantee

New research indicates that most Australian workers are unaware of the $450 minimum monthly threshold to receive Superannuation Guarantee.

The Future of Work, a whitepaper commissioned by REST super fund, found that only 6% of casual employees knew about the $450 threshold for Super Guarantee, with another 4% thinking it was a different amount. 47% of casual workers thought they were eligible for super from the first dollar they earned.

REST CEO Damian Hill said this perception was a cause for concern. Read more...