12 May 2021
Rest welcomes measures in the 2021/22 Federal Budget that will improve retirement outcomes for many of our members, particularly women, and those in lower-income, part-time and casual jobs.
“The measures in this year’s Budget are important progress in making the superannuation system work more fairly for all Australians. We hope this represents the first of many steps by the Government, since much more needs to be done to improve the retirement outcomes and financial security of women and lower-income Australians,” said Vicki Doyle, Chief Executive Officer, Rest.
“We are very pleased that the $450 per month income threshold for Superannuation Guarantee contributions will be removed. The $450 income threshold has disadvantaged hundreds of thousands of Australians working in lower-income jobs, especially those working multiple jobs.
“We are also pleased that the increase of the Superannuation Guarantee rate will go ahead as legislated. This will have a positive impact on the retirement savings of Australians, and particularly will help those who accessed the COVID-19 Early Release scheme replenish their account balances. Likewise, the repeal of the work test and the expansion of downsizer contributions will provide further opportunities for people to boost their retirement savings.”
“The decision to not include superannuation contributions as part of the Parental Leave Pay and Dad and Partner Pay schemes is a missed opportunity to make further progress in closing the gender gap in retirement savings. We strongly encourage the Government to implement this change at the earliest opportunity.
“We also welcome other measures in the Budget that will encourage greater workforce participation and financial security for women, such as the expansion of the Childcare Subsidy and additional funding for aged care. Ultimately, these measures can have positive flow-on impacts for retirement outcomes."