On Tuesday, 11 May, Treasurer Josh Frydenberg delivered the highly anticipated 2021–2022 federal budget, which included a raft of measures aimed at superannuation.
Under the current rules, employees earning less than $450 a month are not required to be paid the superannuation guarantee by their employer.
However, the government has revealed in its federal budget a plan to scrap the $450 minimum threshold, in a move that will see 300,000 workers set to receive additional SG payments each month. Of the 300,000 workers, 63 per cent are estimated to be women.
The government expects the measure to kick in from 1 July 2022 and is estimated to decrease the underlying cash balance by $31.5 million over the forward estimates period.
“This measure will improve equity in the superannuation system by expanding the superannuation guarantee coverage for cohorts with lower incomes,” said the government in its budget papers.
The government will also halt the early release of superannuation to victims of family and domestic violence.
This comes as it moved to increase the maximum amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.