CANBERRA, AAP – Low income earners will receive a boost to their superannuation after changes to existing laws were made in federal parliament.
The $450 threshold – where super is not paid to a worker if they earn less than that a month – will be scrapped.
It means from July, around 300,000 Australians – three-quarters of whom are women – will receive superannuation for the first time.
The median super balance of people impacted by the $450 threshold is just $12,000.
Superannuation minister Jane Hume said abolishing the threshold would remove an outdated structural feature of the system and improve equity.
Top Australian Brokers
- eToro - Social and copy trading platform - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- Pepperstone - Trading education - Read our review
But Industry Super said it was just a first step towards addressing retirement inequality and more action was needed.
“Further measures – like paying super on Commonwealth parental leave – now need to be taken to ensure the next generation of women do not face financial insecurity at retirement,” spokeswoman Georgia Brumby said.
Other changes include allowing people aged between 67 and 75 to make non-concessional superannuation contributions without having to meet the work test.
The limit of voluntary super contributions to be released as part of the first home super saver scheme will also increase from $30,000 to $50,000.
This change is set to help first home buyers save for their deposit quicker.
“Through these measures, the Morrison government is ensuring the superannuation system works harder for all Australians by strengthening protections around the retirement savings of millions of Australians,” Senator Hume said.
