HESTA has urged Federal Parliament to progress important legislation currently languishing in the House of Representatives that would fix a loophole that sees those earning less than $450 a month from an employer miss out on super.

HESTA CEO Debby Blakey called on all sides of politics to take this opportunity to prioritise improving the financial security of some of Australia’s lowest paid casual and part-time workers.

“We have a small of window of opportunity to ensure that this basic equity measure is passed and implemented by 1 July, but Parliament must act now,” Ms Blakey said.

“This basic equity measure will make an important difference to our members who spend their entire working lives caring for others.

“Super is meant to be for all Australians, paid on every dollar earned. Ending this outdated measure will send a strong message to those working in casual or part-time positions for multiple employers that their work is valued.”

The government had previously flagged the legislation would be dealt with by both houses of Parliament today, but the legislation has seemingly not been prioritised. The change has bipartisan support and is expected to pass, if the government progresses the Bill.

Ms Blakey said If Parliament rises tomorrow without passing the Bill, many casual and part-time workers would continue to be unfairly excluded from the full benefits of super.

“The government should not miss the opportunity to make a difference to the financial security in retirement for those Australians who need it most,” Ms Blakey said.

Many HESTA members working in health and community services are low-income earners, working a small number of irregular shifts for a range of employers. This means they may not meet the $450 threshold with one or more employers, further reducing their super balances at retirement.

“We know that women experience a gender super gap that results in them having more than a third less super than men,” Ms Blakey said.

“Scrapping the $450 threshold is long overdue. Parliament must not miss this opportunity to make our super system fairer for women and the lower paid.”

The government committed in its 2021-22 Federal Budget to removing "this antiquated threshold" that sees around 300,000 working Australians – about two-thirds of whom are women – miss out on the full benefits of super.

"If it does not pass before Parliament rises tomorrow, it is unclear whether the legislation will pass before a Federal Election. HESTA has been advocating for this change for many years and will continue to urge politicians to ensure it becomes law as soon as possible."

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THE Indigenous Affairs Committee inquiry into fostering better engagement with Aboriginal and Torres Strait Islander consumers will hear from the North Australian Aboriginal Justice Agency (NAAJA) at a public hearing this Thursday.

Committee Chair Julian Leeser MP said, "NAAJA had expertise on many of the issues currently faced by Indigenous consumers and the gaps that continue to exist in the corporate sector’s understanding of meaningful Aboriginal and Torres Strait Islander engagement.

"The committee looks forward to NAAJA’s insights and to having a productive discussion," Mr Leeser said.

Public hearing details

Date: Thursday, 10 February 2022 (AEDT)
11.35am    North Australian Aboriginal Justice Agency

A live audio stream of the hearing will be accessible at https://www.aph.gov.au/Watch_Read_Listen.

For more information about this inquiry, including its terms of reference, details of upcoming public hearings, and instructions on making a submission, please visit the Inquiry webpage. 

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THE Australian Parliament’s Northern Australia Committee has tabled the report of its inquiry: The engagement of traditional owners in the economic development of northern Australia.

The report found that Aboriginal and Torres Strait Islander peoples were keen to participate in the economic development of northern Australia, both for their own communities and for all Aboriginal and Torres Strait Islander peoples.

Committee Chair Warren Entsch MP said, "The challenge for traditional owners is to leverage the rights provided by native title and land rights for the economic and social advancement of their communities.

The bodies representing traditional owners have a very large burden of responsibilities and expectations placed upon them, but government funding and capacity-building support for them is insufficient. Secure, long-term funding is essential," Mr Entsch said.

"There are important new opportunities for traditional owners in emerging sectors of the economy. These include environmental protection initiatives such as savanna burning, land management, carbon abatement and renewable energy.

Opportunities like these have the special strengths of using traditional knowledge of country. They also support efforts to stay connected with country and to fulfill traditional obligations of custodianship."

Further information, including a copy of the report, can be obtained from the Inquiry website.

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THE House Economics Committee will be holding a public hearing via videoconference on February 10, focusing on the impact of recent amendments made to the Superannuation Industry (Supervision) Act 1993.

This public hearing is part of the committee’s ongoing Review of the Four Major Banks and other Financial Institutions, with the committee to hear from Australian Prudential Regulation Authority (APRA), Australian Securities and Investments Commission (ASIC), Treasury, and Professor Scott Donald.

Committee Chair Jason Falinski MP said, Amendments to Section 56 of the Superannuation Industry (Supervision) Act 1996 were made as part of the government’s response to the Hayne Royal Commission to protect the funds of members by preventing trustees from using these funds to pay for fines incurred by their own actions. However, there have been wide reports of superannuation funds seeking judicial opinions to contravene this provision.

"The committee deserves an explanation from APRA, ASIC and Treasury as to how they are interpreting these new provisions, and what actions they will take to ensure that the decisions made by Parliament are not easily and carelessly overturned. The committee would like to know how superannuation trustees could fund their penalties, and ways to do so that do not put member’s funds at risk or increase their fees."

The committee will also hear from UNSW Associate Professor Scott Donald, who specialises in governance within the superannuation sector.

Mr Falinski said, "Throughout this inquiry, the committee has remained concerned about consumers’ best financial interests. While the regulators will be an important focus of the committee at this hearing, we also look forward to hearing from Professor Donald and his perspective on recent events."

For more information about the hearings, or to read transcripts from previous hearings, visit the committee’s website.

Public hearing details

Date: Thursday 10 February 2022
Time: 9.15am to 11.30am
Witnesses: Professor Scott Donald, APRA, ASIC and Treasury

The hearing will be webcast at aph.gov.au/live.\

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