The removal the $450 threshold for the superannuation guarantee (SG) has been welcomed by the Association of Superannuation Funds of Australia (ASFA) as it will help improve savings for low-income earners.
According to ASFA’s chief executive, Martin Fahy, women and young Australians were particularly adversely affected by the threshold.
"ASFA has consistently advocated for the removal of the $450 threshold to give low income and casual employees an entitlement to super that higher paid employees have as a right,” he said.
"Removal of the $450 threshold improves the coverage of superannuation and enhances equity across the super system.”
The measure would be expected to benefit around 300,000 people, of whom approximately 63% are female, the data found.
"Women’s lower super balances in particular, have given rise to critical social policy issues, including increasing levels of poverty and homelessness in retirement. We will continue to work with the Government to achieve broader structural reforms to improve retirement outcomes for low-income earners,” Fahy added.
“With a maturing superannuation system, we expect to see a greater proportion of retirees relying less on the Age Pension and more on their retirement savings.”