HESTA disappointed by Parliament super failure
HESTA has outlined its disappointment at Parliament for failing to allow those earning less than $450 a month from an individual employer to receive superannuation.
Parliament had completed its sitting for 2021 and any changes would have to wait until the next session in February.
The loophole disproportionately affected those in low income or part-time roles and female workers and was estimated to affect around 300,000 people.
Parliament had committed to making the change at the last Budget and the legislation was slated to commence on 1 July, 2022, but had failed to progress during the latest Parliament session.
Debby Blakey, HESTA chief executive, said: “Ensuring this legislation, which has bipartisan support, is progressed in the next sitting of Parliament in February will send a clear message that equity and women’s economic security is a priority for the Government.
“We already know women experience a gender super gap that results in them having more than a third less super than men. This gender super gap is further exacerbated for members, many of them younger, who have also had to access their super early during the pandemic.
“The passage of this bill is important to helping close this super gap and support members who are needing to rebuild their super savings.”
Women in Super (WIS) had called on the Government to commit to passing the legislation in February, before the election.
AUTHOR
Laura Dew
Recommended for you
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
The Financial Services Council has recommended changes to regulatory design as millions more consumers are expected to need advice in the coming years.
