Removal of the $450 monthly earnings threshold

Women in Super (WIS) supports measures to boost women’s retirement savings. Currently, women make up the majority of the part-time and casual workforce, many of whom do not qualify for Superannuation Guarantee (SG) payments as they do not earn $450 per month. Furthermore, there are many workers in this sector who work in multiple jobs, but do not earn $450 per month from one employer, and therefore also miss out on SG payments.

Estimates show that around 220,000 Australian women and 145,000 Australian men are missing out on around $125 million of superannuation contributions each year due to not satisfying the $450 monthly earnings threshold.[1]

While WIS strongly believes removing this threshold will assist women in boosting their super savings, it will also provide superannuation coverage to all workers, thereby easing the pressures on government somewhat in terms of funding the Age Pension.

 

[1] Association of Superannuation Funds of Australia research

 

Back to Policy and Advocacy Priorities page

 

Connect with us