$450 threshold needs to be removed

The superannuation $450 monthly income threshold needs to be removed as 18 per cent of women who have a job do not reach the threshold, Australian Institute of Superannuation Trustee (AIST) and Women in Super said in the lead up to International Women’s Day.

Data from an AIST commissioned Essential Media survey found that twice the amount of women than men were affected by the threshold limit, with the highest proportion affecting women between the ages of 18 and 35.

Another 42 per cent of women who earned less than $450 a month from one employer were not receiving super.

Related News:

AIST acting chief executive, Eva Scheerlinck, said super should be universal and the threshold needed to be removed, particularly as modern payroll systems made it easier for employers to meet their obligations.

“With increasing casualisation of the workforce, the $450 threshold will continue to impact on both women and men – many of whom are low income earners and need all the super they can get,” she said.

Women in Super chair, Cate Wood, said: “One-in-three women currently retire in poverty and it is time to break with the past and take the fair and rightful step forward by implementing structural changes that deliver real improvements to women”.




Related Content

AFSLs warned against unfair contracts

Australian financial services licensees (AFSLs) need to ensure they avoid ‘unfair contract terms’ for their authorised representatives to avoid a ...more

Don’t make us pay compensation for others’ failures – FSC

Members of the Financial Services Council (FSC) should not have to help underwrite a last resort compensation scheme in circumstances where they alrea...more

Industry funds give cautious welcome to super measures

Industry funds representative group, the Australian Institute of Superannuation Trustees (AIST) has given a cautious welcome to the Budget superannuat...more

Author

Comments

Comments

Would those earning less than $450 per month appreciate the reduction in wages that this would lead to?

Remove the threshold. Help us retire for the better.

if you are earning this low amount then why put money into super? The tax is higher than getting the money in your pocket and then you can put it into super yourself and get the government co-contribution.

Add new comment