Super Consumers Australia welcomes the move to pay super to 300,000 more Australians

Super Consumers Australia welcomes the passage of legislation through the Senate today, which will abolish the $450/month threshold and mean more Australians will be paid super for their work.

“Scrapping this dinosaur rule is a step towards making super fairer,” says Xavier O’Halloran, Director at Super Consumers Australia.

The Retirement Income Review had confirmed axing this rule would lead to better retirement outcomes for women, low-income earners and people doing part-time work in particular.

Around 300,000 Australians, including about 200,000 women and 100,000 men, were missing out on super because of this rule. (With the legislation now passed through both houses of parliament, this situation will end on 1 July 2022)

O’Halloran says the rule was a relic of a previous era before digital payrolls, and any justification for it remaining had long passed.

“It’s an important change that will make the superannuation system more equitable,” O’Halloran says.

“However, there is still work to do to make sure the retirement system is fair for all Australians. We know that carers and those who take parental leave are missing out on super, impacting their retirement. 

“We need to keep working to ensure that taking time out of the workforce to care for loved ones doesn’t set you back once you’ve finished your working life.”