Labor plans to drop divisive SG threshold if elected
As part of a raft of changes aimed at boosting women’s super, Labor has announced plans to phase out the $450 minimum monthly income threshold for eligibility for the superannuation guarantee.
The Labor Party has announced a raft of measures to help strengthen women’s superannuation balances as part of a $400 million package.
One of these measures includes phasing out the $450 minimum monthly income threshold for eligibility for the superannuation guarantee.
The income eligibility threshold, Labor said, disadvantages people who work part-time, casual and in multiple low‑paid jobs.
Labor said it also plans to implement measures that will make it easier for employers to make extra payments into a woman’s superannuation fund and improve transparency by publishing the impact of any future changes to super on women.
As part of the measures, it will also ensure that recipients of Commonwealth Paid Parental Leave and Dad and Partner Pay payments continue to receive super contributions.
In a public statement, Opposition leader Bill Shorten said despite all of its successes, superannuation is still not working effectively for women.
“By the time they are 60, 34 per cent of single women in Australia live in poverty,” said Mr Shorten.
“This is a complex issue. While today’s measures won’t end the problem, they will help reduce the inequity in the system.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
