AIST calls for removal of $450 monthly income threshold
The Australian Institute of Superannuation Trustees (AIST) and Women in Super have called for the removal of the $450 monthly income threshold, stating that it negatively impacts the super balances of many women.
AIST said data from an ASIT commissioned poll indicates that around one in five women, or 18 per cent of women, currently have a job that pays less than $450 a month.
“This is nearly twice the number of men affected by the threshold limit, with the highest proportion of women affected between the ages of 18 and 35 years old,” said AIST.
Of these women earning less than $450 a month from one employer, 42 per cent are not receiving super, according to the poll.
“Under current legislation, employers are not obliged to pay the superannuation guarantee if the employee is paid less than $450 a month,” said AIST.
AIST acting chief executive Eva Scheerlinck said the $450 monthly threshold should be removed particularly as modern payroll systems make it easier for employers to meet their obligations.
“We need to remove all barriers that prevent women saving enough super for a dignified retirement,” said Ms Scheerlinck.
“With the increasing casualization of the workforce, the $450 threshold will continue to impact on both women and men – many of whom are low income earners and need all the super they can get.”
