Published: 04/11/2021
Category: Break It Down For Me
Published: 04/11/2021
Category: Break It Down For Me

Earlier this month workers had a huge win. The $450 income threshold has been for super guarantee contributions has been removed. 

But what exactly does that mean? 

Superannuation can be a bit of a beast to unpack, so let’s run through what the threshold is and what it means for you. 

The $450 Threshold 

The minimum income threshold refers to when employers are legally required to start paying employees super. Once an employee earns a minimum of $450 in a calendar month, the employer is required to pay a super guarantee contribution that goes towards the workers’ retirement. 

But here’s the catch. 

Because of the insecure work epidemic in Australia, workers are working multiple jobs that push them above the $450 threshold when calculated cumulatively, but do not earn enough income in any one job to reach the minimum required amount. 

To make matters worse, the people disproportionately affected by this kind of policy are women. Women are more likely to work multiple jobs. This is compounded with the awful statistic that women retire with less than half the amount of superannuation of men, contributing to the Gender super gap. 


In short, Australia has a heap of workers (namely women) working more than one job to make ends meet without earning any super, despite their overall income being over the $450 threshold. 

Through the tireless work of union activists, workers and unions, this piece of policy has been scrapped. It brings us one step closer to closing the gender super gap and giving workers the retirement they have worked so hard for. 

So what’s next?

The removal of the $450 threshold is one of the first of many steps to removing the obstacles that stop working people from achieving a dignified retirement. 

Superannuation still needs to be put into the National Employment Standards to ensure workers can easily recover it, and we need to raise the minimum legal super guarantee payment from 10% of one’s income to 15% to keep in line with the increasing cost of living standards. 

These are all steps that we still need to take – and with your help, we’re making progress. The best way to improve your wages and superannuation is to join a union.

Join your union

The best way to improve your wages and superannuation

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Super Win! Working people will retire with more because of this huge change.

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Super Win! Working people will retire with more because of this huge change.