Media Releases

27 October 2021

Removal of the SG $450 threshold will improve super savings for low-income earners

The Association of Superannuation Funds of Australia (ASFA) welcomes the Government’s introduction of legislation that will remove the $450-a-month threshold before an employee’s salary or wages count towards the Superannuation Guarantee (SG).

“This is an important step towards providing adequate retirement savings for low-income earners, particularly for women and younger Australians, whose superannuation is adversely affected by the $450 threshold,” said ASFA CEO, Dr Martin Fahy.

“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.”

The employees who are affected by this measure, who earn less than $450 a month from a single employer, tend to be young, lower-income, part-time workers. This measure will benefit around 300,000 people, of whom approximately 63 per cent are female.

“Removal of the $450 threshold improves the coverage of superannuation and enhances equity across the super system,” said Dr Fahy.

“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.”

“Australia’s superannuation system enables Australians to achieve dignity in retirement. 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,” concluded Dr Fahy.


For further information, please contact:
ASFA media team, 0451 949 300.


About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

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