It’ll soon be time to check those pay slips because you may be one of the workers getting a permanent boost to your superannuation.
As of 1 July, the $450 threshold for superannuation will be abolished. And that’s good news for low-paid and underemployed workers.
The threshold prevented workers who earned less than $450 per month from a single employer receiving guaranteed superannuation payments.
So even those working two or three jobs might not have received any super contributions if they weren’t earning above $450 per month with any one of those employers.
But with the threshold gone, workers can finally start building up their superannuation for retirement.
Big shout out to union members who have been campaigning for this change for years. The $450p/month threshold on super disproportionately affected young, lower income and part time workers – the majority of whom are women. #ProudToBeUnion— Australian Unions (@unionsaustralia) February 10, 2022
A step in the right direction for working women
Working women in particular are set to benefit from having the threshold removed. Around 200,000 working women earn less than $450 a month and therefore have not been earning super contributions other than out of their own pocket.
Union members have worked hard for years to see the threshold gone for good. Our collective win is a big step in a long union campaign towards ensuring financial security in retirement for all workers. But much more needs to be done.
To protect worker retirement, we need a legislated pathway to a superannuation guarantee rate of 15 per cent. Superannuation must also be paid on parental leave to ensure working women aren’t left behind when they retire.
You can make this win extend even further
Poor retirement savings are directly related to insecure work and gig work. The removal of the $450 threshold does not mean that every worker is getting super on every dollar earned.
Gig economy and contractors still aren’t guaranteed superannuation payments. Too many workers have insecure job with fewer rights and no ability to plan for the future.
Union members are campaigning for work to be reliable for everyone. It’s no coincidence that union members are more likely to be employed in permanent roles and we’re working to make stable jobs achievable for all workers.
We believe that if you want things to change, then through strength in numbers, we can make it happen.
Through real action, union members have more secure, reliable jobs, decent wages, and support if they need it.