Australia’s first female Prime Minister has an historic opportunity to redress an unfair aspect of the nation’s superannuation policy settings by removing the $450 earnings threshold for Superannuation Guarantee (SG) contributions, says ASFA – the Voice of Super.
“The Federal Government’s submission to Fair Work Australia on its current Equal Remuneration Case should be amended to also include superannuation contributions on all wages paid,” ASFA Chief Executive Pauline Vamos said.
“Removing the $450 threshold would address a fundamental unfairness whereby those on low incomes or those in multiple low paid jobs essentially forgo nine percent of their wages without any compensation. This is especially important for women as many are engaged in low paid and casual jobs. Removing the threshold will lead to greater labour market efficiencies and productivity gains.”
The urgency for a fairer superannuation system is highlighted by Rice Warner Actuaries whose research shows that, despite 25 years of compulsory superannuation, retirement benefits for women are still relatively low and lower than for males.
“Government needs to be mindful of the ‘gap’ caused by women earning less than men, interruptions to work patterns due to motherhood, and longer life expectancy,” Ms Vamos said. “According to Rice Warner, the adequacy gap for a woman, with female pay and a career break, could be as much as $251,000.
“The issue of gender access and equity to superannuation is a priority for ASFA. We will continue to work with relevant stakeholders on this.
“Government can make a significant and immediate change by legislating for the removal of the $450 threshold. ASFA also calls on all sides of politics to work toward increasing the SG to 12 percent, rebating the tax on concessional contributions for those earning under $37,000 and increasing the voluntary contribution caps in order to enable women to close the savings gap and catch up.”
For further information, please contact:
Pauline Vamos, ASFA Chief Executive, 0433 169 342
Michelle Dunner, ASFA GM Marketing and Communications, 0412 704 016
Sarah O’Grady, ASFA Communications Co-ordinator, 0410 439 966
About ASFA
The Association of Superannuation Funds of Australia (ASFA) is the peak industry body for the entire superannuation sector. It is the only industry body that represents all types of superannuation funds, service providers and fund members.