COTA’s long campaign to make superannuation fairer gained a significant victory recently with the passing of legislation to ensure that workers paid less than $450 per month still have access to the Superannuation Guarantee.
This legislation abolishes a significant inequity in our superannuation system, which directly penalises low-income earners and disadvantaged Australians, as found by the Retirement Income Review. Australians earning less than $450 a month from a single employer are often in insecure work and holding multiple jobs that add up to more than $450, but they receive no super on any of it. Now every worker will earn super on every dollar they are paid, no matter what they are paid. After calling for this reform for many years, it’s pleasing to see it passed and know that Australians on low incomes will have a fairer go at a dignified and happy retirement.
Other changes to the superannuation system passed as part of this package of legislation include:
- Extending the “Downsizer” program to people aged 60 years,
- The removal of the work test requirement for non-concessional superannuation contributions for those aged between 67 and 75 years, and
- The extension of eligibility for people under 75 years to make non-concessional contributions using “bring forward” rules.
Thanks to the members of Federal Parliament for working collectively to pass these important changes to our superannuation system in a timely way so they can come into effect from 1 July 2022 and make superannuation more accessible and equitable for more Australians.
A detailed guide to the recent changes can be found at https://www.superguide.com.au/how-super-works/superannuation-changes-rules-apply-current-year
The Australian Government’s information on Superannuation can be found at https://www.ato.gov.au/Individuals/Super/