Aussies not aware of SG threshold

Less than one-in-ten Australians are aware of the $450 superannuation guarantee (SG) threshold including eligibility for receiving super payments, according to REST Industry Super.

The latest research by REST found employees working in contingent and part-time jobs were missing out on $147 million annually in super payments.

REST chief executive, Damian Hill, said the fact that 40 per cent of part-time employees and 47 per cent of contingent workers surveyed believed they were paid the SG from the first dollar they earned was a cause of concern.

Related News:

The paper said the lack of awareness was disproportionally affecting Australian women who accounted for 70 per cent of the contingent workforce and 82 per cent of the part-time workforce.

"The lack of awareness of the superannuation guarantee threshold is particularly troubling as traditional employment methods continue to change, with an increasing number of young Australians taking up part-time, or contingent work," Hill said.

The research also found that 44 per cent of surveyed employees believed that everyone had access to income protection insurance, regardless of their employment status.

"As we shift towards a more contingent workforce, access to income protection insurance is more important than ever, as most of these roles don't provide paid leave in the event of illness or injury that require an extended period off work," Hill said.

The research called for policy makers, employees, and employers to consider how employees could have functional work arrangements that spanned insurance, work patterns, and superannuation, when 70 per cent of the workforce expected that it would be the norm for people to pick up extra work through job-related websites or apps.

Hill noted that it was more important than ever that Australians had functional super and insurance arrangements in place.

"The contingent workforce is here to stay, and it's up to us to ensure that it works for all Australians, particularly women, who account for nearly three-quarters of the contingent workforce in Australia," he said.




Related Content

Making super come alive

Getting superannuation fund members to talk about their super before they turn 50 has always been a difficult task. The intangible nature of super cou...more

TTR still viable for over 60s

Transition-to-retirement (TTR) strategies are still viable for those over 60 as those pension payments are tax free and allows more salary sacrifice a...more

Two-thirds of industry funds not viable

Two-thirds of industry superannuation funds are not viable if $2 billion in funds is regarded as a minimum size, according to Rice Warner.In response ...more

Author

Comments

Add new comment