Government must remove $450 super guarantee threshold
The Association of Superannuation Funds of Australia (ASFA) has called for the government to remove the $450 monthly minimum threshold for superannuation guarantee payments, which it says affects the super balances of mainly women.
An Employment and Workplace Relations Committee report draws attention to the imbalance between men and women during their working lives and into retirement, and recommends the removal of several discriminatory practices.
ASFA chief Pauline Vamos said “too many Australian women will face an uncertain standard of living in retirement unless their superannuation balances show significant improvement”.
The Australian institute of Superannuation Trustees (AIST) has also backed the report.
It estimates that more than 250,000 women miss out on receiving superannuation contributions each year due to the current legislation.
“It affects women not only in their working lives, but long after they finish working and are in retirement. Women, particularly after they have had children, are more likely to return to work in a part time or casual capacity in low paid roles. This compounds the inequity inherent within the system,” AIST chief executive Fiona Reynolds said.
According to the AIST, 80 per cent of females in retirement rely solely on the age pension to fund their retirement.
It said the average account balance of a woman retiring today is $65,000, less than half the amount of males who have an average super account balance of about $150,000.
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