Retirement
SG $450 threshold nears its end as omnibus bill hits Parliament
The government is finally delivering on its budget promise to remove the $450 per month superannuation guarantee threshold.
SG $450 threshold nears its end as omnibus bill hits Parliament
The government is finally delivering on its budget promise to remove the $450 per month superannuation guarantee threshold.

Amendments to superannuation law introduced into Parliament on Wednesday will, among other things, ensure the removal of a structural discrimination, in place since 1992, that has barred employees with an income of under $450 per month from accessing the superannuation guarantee.
The $450 threshold removal was part of the government’s budget promise to women and was flagged as a move to ensure low-income earners, particularly women and younger Australians, have access to adequate retirement savings.
Commenting on the government’s introduction of legislation that will scrap this barrier, the Association of Superannuation Funds of Australia (ASFA) said if Parliament approval is granted some 300,000 people stand to benefit, of whom approximately 63 per cent are female.
"Removal of the $450 threshold improves the coverage of superannuation and enhances equity across the super system," said ASFA CEO Dr Martin Fahy.

"Women’s lower super balances in particular, have given rise to critical social policy issues, including increasing levels of poverty and homelessness in retirement. We will continue to work with the government to achieve broader structural reforms to improve retirement outcomes for low-income earners," Ms Fahy noted.
Also included in the Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021 is an increase in the maximum amount of voluntary contributions that people are able to release under the First Home Super Saver Scheme (FHSSS) from $30,000 to $50,000.
Moreover, if the omnibus bill garners the necessary support, it will reduce the eligibility age to make downsizer contributions into super from 65 to 60 years of age, allowing more older Aussies to consider downsizing to a home that better suits their needs.
In addition, the bill supports the repeal of the work test for non-concessional and salary sacrificed contributions, which will be implemented through regulation changes the government intends to make before the end of the year.
It also reduces costs and simplifies reporting for self-managed superannuation funds and small APRA-regulated funds and extends the end date of temporary full expensing to 30 June 2023.
About the author

About the author


Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more

Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more

Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more

Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more

Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more

Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more

Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more

Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more

Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more