The Association of Superannuation Funds of Australia (ASFA) is calling for the wage threshold for the Superannuation Guarantee to be removed, since everyone deserves superannuation, no matter how much they earn. The current wage threshold is $450 per month with around 220,000 women and 145,000 men not receiving any superannuation at all because of this rule.
ASFA has lobbied on this topic before, since it affects many Australians, but in particular young people, students, and women, and those in hospitality, retail and caring roles.
An example used was of a 19-year-old student earning $4,000 a year who would miss out on a $1,900 in superannuation over five years. This is money that can kick start their superannuation and provide group insurance at even the most basic levels of default cover.
ASFA's spokesperson said, ''Removal of the threshold is a long overdue correction. As more and more people build portfolio careers around the gig economy, we need to move with the times and recalibrate SG to meet their needs.'
It’s time to level the field, give everyone the entitlement of super and strengthen the super system by removing any impediment to providing a fully universal means to build wealth.'