The superannuation guarantee (SG) needs to be recalibrated to include low income Australians and meet their needs, according to the Association of Superannuation Funds of Australia (ASFA) which previously lobbied for the removal of the $450 threshold.
It said that the current $450-a-month threshold for the SG meant that around 220,000 females and 145,000 males were missing out on approximately $125 million of super contributions each year.
In particular, this situation impacted women, who often worked in casual and part-time jobs for more than one employer at a time, young Australians in casual jobs, students aged 19 working part-time for five years and earning $4,000 a year as well as casual and low paid workers in retail, hospital and nursing.
According to ASFA’s chief executive, Martin Fahy, removing the threshold would boost the retirement savings of many women as well as the young and “it was about time for total equality with SG”.
“It’s time to level the field, give everyone the entitlement of super and strengthen the super system by removing any impediment to providing a fully universal means to build wealth,” he said.
“Removal of the threshold is a long overdue correction. As more and more people build portfolio careers around the gig economy, we need to move with the times and recalibrate SG to meet their needs.
“There is room to include everyone and we should be doing so as soon as possible.”