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Legislation to remove $450 threshold welcomed
The superannuation industry has welcomed the introduction of legislation that will see the removal of the $450 monthly income threshold for employer super payments by Nick Xenophon’s party.
The Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck, said the threshold impedes the ability of people working multiple jobs to save for their retirement.
“We have examples where someone is working for three or four employers but aren’t hitting the income requirements for superannuation from any one of them,” Scheerlinck said.
“If we want superannuation to be truly universal then the threshold must go, particularly with the increasing casualisation of the workforce.”
She said the threshold was outdated and its removal would reduce complexities for both employers and employees.
“While we know that most employers do the right thing, there are cases where the rules get confusing and people are unsure if they are eligible or not for superannuation contributions from their employer,” Scheerlinck said.
“By making superannuation a universal entitlement we’re creating a simpler system for everyone – if you’re over 18 and work for an employer, you’re entitled to super – no exceptions.”
AIST pointed to Australian Bureau of Statistics data that found more than 350,000 Australians were affected by the threshold.
Scheerlinck also welcomed the proposed measures that would require employers to provide notice of when super contributions were made (or not made) as opposed to simply reporting entitlements accrued.
“Superannuation is deferred wages and must be treated as such on employee pay slips,” she said.
“Clearer reporting will allow employees to check their super balance like they would their bank account, making it easier for them to notice errors or non-payment."
Industry Super Australia (ISA) also welcomed the legislation and said the unpaid super of millions of hard-working Australians should be a top priority for the government.
ISA public affairs director, Matt Linden, said: “In particular the alignment of super and wage payments is essential, and the $450 threshold makes no sense with more of the workforce, particularly women, in part-time and casual work”.
“These measures will benefit part-time and casual workers, and women whose super savings are falling seriously short at retirement,” he said.
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