Business NSW Central Coast has applauded the passing of new legislation which will see a superannuation boost to 300,000 Australians on lower incomes, two thirds of them women.
The Enhancing Superannuation Outcomes for Australians Bill, which passed Federal Parliament last week, will abolish the outdated $450 threshold, when super is not paid if a worker earns less than that figure a month.
The threshold was denying many part-time and casual workers retirement savings.
Treasurer Josh Frydenberg said the Bill delivered on a key commitment in the 2021-22 Women’s Budget Statement.
“This will remove an outdated structural feature of the superannuation system and in doing so will improve equity in the system,” he said.
The Bill will also allow individuals aged between 67 and 75 to make non-concessional superannuation contributions under the bring-forward rule.
It also supports the repeal of the work test for non-concessional and salary sacrificed contributions made by individuals aged between 67 and 75.
The new superannuation measures will take effect from July 1 this year.
Business NSW Central Coast Regional Director, Paula Martin, said the Central Coast is a large employer of part timers who make up just over 40 per cent our total workforce with women comprising 78 per cent of part-time workers aged 25-34 and 87 per cent of part time workers aged 35-44.
“It is important that such a large section of our working community has measures in place to support them towards retirement,” she said.
“The volatility of the last two years has seen a new working environment emerge so business can upscale or downscale their operations when needed.
“This has resulted in an increase of part time or flexible working hour roles across local industry sectors since 2019.
“Female participation in the workforce part time or full time is also necessary for the Central Coast to manage the current labour and skills shortages, so addressing equity in pay has been long called for.”
The bill has also been welcomed by Industry Super Australia as a “first step towards addressing gender equity in retirement”.
The organisation said the major parties must also commit to paying super on Commonwealth Parental Leave Pay and sticking with the super guarantee rise to 12 per cent to seriously address the gender super gap.
Terry Collins