Super win for women workers
Poor superannuation policy costs the low paid $59 million a year.
The $450 threshold for superannuation contributions has been scrapped after years of union campaigning. The poor policy introduced by the Coalition government led to $59 million being withheld from the superannuation of low-paid workers every year.
Women – who make up 63 per cent of the workforce – who earn under $450 a month from a single employer, will benefit most from the change, say unions and superannuation funds.
“Removing the $450 threshold is a critical step in closing the gender superannuation gap, which sees women retiring with half the savings as men and 40 per cent of retired single women living in poverty,” said ACTU Assistant Secretary Scott Connolly.
“This is long overdue, and while the unions were fighting hard for it for years, consecutive Coalition governments allowed millions of dollars in superannuation to be lost.
“Poor retirement savings are directly related to insecure work and gig work, with some workers not being paid super at all under the $450 restriction despite working multiple jobs.
Superannuation must be paid on every dollar earned.”
The ACTU says much more needs to be done to ensure financial security in retirement for all Australians.
“To protect worker retirement, the government must ensure their commitment to increasing the superannuation guarantee to 12 per cent. Superannuation must also be paid on parental leave, to further close the gender retirement gap,” says Scott Connolly.