Super threshold gone

After sitting on their Budget-announced promise to remove the $450 monthly earning threshold to receive SG for the whole of 2021, we were relieved to see the bill finally pass in February. The removal of the $450 threshold is effective 1 July 2022.

For too long, this antiquated 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 workers, 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.

Getting rid of the $450 threshold helps make our super system fairer for women and those on lower wages. However belatedly, it’s a fantastic result for HESTA members, and indeed for all Australians who work multiple, part-time of 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.

The fight’s not over

We’re so grateful to have partners like you, who continue to fight with us to make the super system fairer. Our next step is to further lobby for SG contributions to continue while a worker is on parental leave. We look forward to being able to share this progress with you soon.