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How does the removal of the $450 monthly income threshold affect workers in Australia?
Calling casual workers, part-timers and multiple-job-havers – do you earn less than $450 a month from one employer? We have good news – the $450 monthly income threshold will be removed from 1 July 2022, which means that eligible employees will be entitled to Super Guarantee contributions from 1 July 2022.
It’s time to give all workers a fair go
At Rest, we’ve been advocating for this change for a while now. Many of our members are part-time workers or lower income earners who deserve to be paid Super Guarantee (SG) contributions regardless of their monthly income.
It’s estimated that the $450 monthly income threshold is putting a whopping 300,000 employees at a disadvantage heading into retirement.*
What will change?
On 1 July 2022, the $450 monthly income threshold for SG contributions will be removed. This means that more workers will be entitled to receive SG contributions on every dollar earned.
This change will affect eligible workers who:
earn less than $450 per month; or
earn over $450 per month from multiple jobs but each job pays less than the threshold.
Check that your employer pays your SG contributions and that it’s the correct amount. This is particularly important for anyone who has been affected by the $450 income threshold, but it’s also a good exercise for all workers.
Some tips to get you started:
SG contributions should be paid quarterly (at minimum) and must be at least 10% of your ordinary time earnings (OTE).
Check your payslip. Your SG contributions will be listed there.
Cross-check with your super statement to make sure the payment has been made. Rest members can jump on the Rest App and see all their employer super contributions made to their fund.
Did you know?
From 1 July 2022, the percentage rate for the Super Guarantee (SG) increases from 10% to 10.5%. Employers are required to contribute additional money into their employees' super accounts in line with the higher SG percentage rate.
*Estimates based on ATO Single Touch Payroll data for July 2019, provided to the Retirement Income Review, published in the Retirement Income Review - Final Report. Canberra: Commonwealth of Australia, 2020, pp 298, 301.
Want to learn more?
Did you know the Super Guarantee rate is increasing?
From 1 July 2022, the super guarantee rate will increase from 10% to 10.5%. Here's what it means.