In this guide
- $450 income threshold lifted
- Retirement income covenant introduced
- Aware Financial Services Australia fined $20 million by ASIC
- Inflation hits retirees
- APRA to focus on sub-standard practices in super
- Australian super funds lead decarbonisation
- SMSF Association calls for simplification of transfer balance cap
- Proxy advice regulations overturned in Senate
$450 income threshold lifted
The Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, which allows for a number of changes to super and removes the $450 monthly threshold for wages on which super must be paid, has passed through parliament. Previously, if employees earned less than that a month their employer did not need to pay the superannuation guarantee for them.
“We’re pleased the government has listened to super funds and abolished this threshold. This decision will benefit an estimated 300,000 lower-paid Australian workers, 63% of which are women and many of whom are our valued Hostplus members,” Hostplus chief executive officer David Elia said in a post on LinkedIn.
“This long overdue reform is a marked step forward to ensure greater numbers of workers in entry-level, part-time and casual jobs get a much-needed and well-deserved contribution to their super savings.”
The passage of the Bill will also allow older Australians aged between 67 and 75 to use the bring-forward rule for non-concessional super contributions and repeals the work test for non-concessional and salary-sacrificed contributions for 67–75 year olds.
