Removal of $450 Monthly Income Threshold is great news for Media Super members
The removal of the $450 Monthly Income Threshold means many more Media Super members will have access to employer superannuation contributions, meaning they could retire with more savings.
Previously, workers needed to earn a minimum $450 in pre-tax income from one employer per month to be eligible for the super guarantee (SG). However, legislation passed in Federal Parliament will remove this threshold from 1 July 2022.
The Superannuation Guarantee is also rising to 10.5% from 1 July 2022.
This means that from 1 July this year, employers will be required to make 10.5% superannuation contributions for their workers earning less than $450 in pre-tax income per month.
Industry Super Australia estimates the change will see approximately 300,000 more hard-working Australians become eligible to be paid SG contributions.
Women make up around two thirds of that number, and the threshold’s removal will help reduce the super gap between men and women. According to Women In Super, women retire with around $70,000 less than men on average.
It’s also welcome news for freelance and self-employed workers – many of whom are Media Super members – and work multiple jobs at a time to make ends meet.
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