HESTA welcomes legislation scrapping $450 super threshold, improving financial security for women

HESTA has welcomed the Federal Government progressing their legislation through the Parliament today, removing the $450 monthly wages threshold for payment of Super Guarantee contributions.

The threshold has unfairly disadvantaged the retirement savings of low paid casual and part-time workers for years, according to HESTA.

“The requirement to earn $450 per month with one employer before you get paid super has compounded financial insecurity for casual and part-time workers, who often have lower pay and are in insecure or precarious work,” HESTA CEO Debby Blakey said.

"More than 80 percent of our members are women. Women are more likely to work in multiple part-time or casual roles with different employers. The result is that they can totally miss out on the benefits of super, which leaves them more vulnerable to poverty as they age.”

Ms Blakey said HESTA had advocated for many years to scrap the $450 super threshold and congratulated the Federal Government on ending a super system inequity that disproportionately impacted women.

“Super is for all Australians and ending this outdated measure helps make our super system fairer for women and those on lower wages,” Ms Blakey said.

“Our members spend their working lives caring for others and the long overdue removal of this threshold will ensure that they’ve now got a better opportunity to enjoy a more financially secure retirement.

“The fact that super continues not to be paid on parental leave remains an obvious gap in our super system that needs to be addressed.”

 

ends