COTA has long argued that it is vital superannuation is paid on every dollar earned so that people can have the best possible income during their years of retirement. We welcome the Government’s introduction of a Bill to Parliament to give effect to their election promise of removing the $450 minimum threshold for Superannuation Guarantee contributions.
This measure is of most benefit to women, who make up around 63 percent of the estimated 300,000 people to benefit from this change to legislation. COTA remains concerned about the fact that older women have historically had lower super balances on average than men, and that this feeds into critical social issues such as homelessness and rising poverty.
Unfortunately this Bill did not pass the Senate before it rose last Thursday. It is vital that it pass the Senate when it returns in February, so that we can see more people, especially women, enjoying a better income in retirement, and relying less on the age pension. Further, we would urge the Government to direct the Australian Tax Office to increase its enforcement activities to ensure that employers actually pay the super payments that they are now obliged to.
The text of the Bill can be found here.