About 300,000 lower-paid Australians, mostly women, will start receiving superannuation payments as a result of legislative changes welcomed by the Australian Institute of Superannuation Trustees (AIST).
AIST CEO Eva Scheerlinck said the removal of the $450 monthly salary threshold for superannuation contributions today was a positive step toward achieving better retirement savings outcomes for low paid workers.
“The super industry has long called for the scrapping of this arbitrary limit on employer super contributions, so we welcome the passage of the legislation, which looked in doubt of passing earlier today,” Ms Scheerlinck said.
“This is an important equity measure that will make an immediate difference to the retirement outcomes of some of Australia’s most disadvantaged workers, including women, who make up two out of three of those impacted, many of whom work in two jobs just to make ends meet.
“However, a lot more needs to be done to address the difference in super balances between men and women and, as the peak body for profit-to-member super funds, AIST will continue to advocate for broader initiatives to close the gender gap.”
Ms Scheerlinck said other initiatives needed included introducing superannuation on paid parental leave, addressing the gender pay gap, and ensuring there was no change to the legislated timetable to increase the super guarantee to 12%, from 10% now.
“These are among a raft of additional changes needed to make our retirement savings system fairer for all Australians, but particularly women,” she said.
AIST also welcomed the passage of legislation that enshrined a Retirement Income Covenant for super funds.
Ms Scheerlinck said funds already had a strong focus on the retirement needs of their members and the covenant would add to these efforts.
