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ASFA calls for removal of $450 SG threshold
The Association of Superannuation Funds of Australia (ASFA) has called for the Government to remove the "unfair" $450 earnings threshold for superannuation guarantee (SG) contributions, which would help to address the gender gap in superannuation.
"The Federal Government's submission to Fair Work Australia on its current Equal Remuneration Case should be amended to also include superannuation contributions on all wages paid," ASFA chief executive Pauline Vamos said.
"Removing the $450 threshold would address a fundamental unfairness whereby those on low incomes or those in multiple low paid jobs essentially forgo 9 per cent of their wages without any compensation. This is especially important for women as many are engaged in low paid and casual jobs. Removing the threshold will lead to greater labour market efficiencies and productivity gains."
Rice Warner Actuaries research shows that retirement benefits for women are still lower than for males, and the adequacy gap for a woman due to lower wages and a career break could be as much as $251,000, according to ASFA.
"Government needs to be mindful of the gap caused by women earning less than men, interruptions to work patterns due to motherhood, and longer life expectancy," Vamos said.
ASFA also reiterated calls for all sides of politics to work toward increasing the SG to 12 per cent, rebating the tax on concessional contributions for those earning under $37,000 and increasing the voluntary contribution caps in order to enable women to close the savings gap and catch up, Vamos said.
AUTHOR
Mike Taylor
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