$450 super threshold removed

The bill to remove the $450 monthly earning threshold to receive SG contributions - announced in the May 2021 Federal Budget - finally passed at the government’s last sitting week in February. It will be effective 1 July 2022. 

At HESTA, we believe the $450 threshold has perpetuated ongoing inequity for casual and part-time workers, usually women, who often have lower pay and are in insecure or precarious work. This threshold has meant these employees, particularly those working a small number of irregular shifts for a range of employers, can miss out on the benefits of super, leaving them more vulnerable to poverty as they age.

Removing the $450 threshold helps make our super system fairer for women and those on lower wages. It’s a great result for HESTA members, and indeed for all Australians who work multiple, part-time or casual roles.

Other changes to super effective 1 July 2022 are:

• the eligibility age for the super downsizer scheme will be lowered to 60 from 65, and
  
• the super contribution work test for those aged 67 to 74 will be removed, enabling older Australians to continue building their super savings.

An earlier Federal Budget

With an election slated for May, this year’s Federal Budget will be handed down on Tuesday 29 March 2022. We’ll be sure to communicate any relevant promises and changes to you soon after that date.