Government moves to scrap SG $450 threshold

The government is finally delivering on its budget promise to remove the $450 per month superannuation guarantee threshold.

Amendments to superannuation law introduced into Parliament on Wednesday (27 October) will, among other things, ensure the removal of a structural discrimination, in place since 1992, which has barred employees with an income of under $450 per month from accessing the superannuation guarantee.

The $450 threshold removal was part of the government’s budget promise to women and was flagged as a move to ensure low-income earners, particularly women and younger Australians, have access to adequate retirement savings.

Commenting on the government’s introduction of legislation that will scrap this barrier, the Association of Superannuation Funds of Australia (ASFA) said if Parliament approval is granted some 300,000 people stand to benefit, of whom approximately 63 per cent are female.

“Removal of the $450 threshold improves the coverage of superannuation and enhances equity across the super system,” said ASFA chief executive Dr Martin Fahy.

“Women’s lower super balances in particular, have given rise to critical social policy issues, including increasing levels of poverty and homelessness in retirement. We will continue to work with the government to achieve broader structural reforms to improve retirement outcomes for low-income earners.”

Also included in the Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021 is an increase in the maximum amount of voluntary contributions that people are able to release under the First Home Super Saver Scheme (FHSSS) from $30,000 to $50,000.

Moreover, if the omnibus bill garners the necessary support, it will reduce the eligibility age to make downsizer contributions into super from 65 to 60 years of age, allowing more older Aussies to consider downsizing to a home that better suits their needs.

In addition, the bill supports the repeal of the work test for non-concessional and salary sacrificed contributions that will be implemented through regulation changes the government intends to make before the end of the year.

It also reduces costs and simplifies reporting for self-managed superannuation funds and small APRA-regulated funds and extends the end date of temporary full expensing to 30 June 2023.

Maja Garaca Djurdjevic
28 October 2021

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Mark Lisle

Mark is our managing partner and has been with the firm for over 36 years. He brings a wealth of experience in all areas of our business, including business advisory, taxation and self managed superannuation.

Mark’s ethos is that good advice stems from working closely with our clients and being prepared to go that extra step to assist them in meeting their goals and optimising their financial position.

Mark is a Fellow of Chartered Accountants Australia and New Zealand, an accredited SMSF Specialist and a registered SMSF auditor.

Outside of work, Mark enjoys trying to keep fit and spending time down at his “second home” in Port Fairy.

Josh Laing

Joshua began working at Rundles in 1999 whilst still completing his Bachelor of Business (Accountancy) degree at RMIT. After graduating in 2001 he was admitted to the Institute of Chartered Accountants Australia and New Zealand in 2004. Joshua spent two years working in London before returning to Rundles in 2006.

Josh has a wealth of knowledge across a broad range of industries as well as in Self Managed Superannuation. Josh enjoys working with family groups and businesses to ensure they’re structured correctly to maximise asset protection, succession planning and management of tax.

Married with 2 children, Josh spends his weekends with his family and following the Tigers.

Brad Roach

Brad has been a part of the Rundles Team since 1996 and became a Partner of the firm in 2014. During his time at Rundles, Brad has developed a strong relationship with his clients across a wide range of industries and is dedicated to assisting them to reach their personal and business goals.

Brad is passionate about seeing his clients succeed and utilises his extensive experience in public practice to provide a holistic service to his clients. He also has a wealth of experience in superannuation, particularly self managed superannuation funds.

In his spare time, Brad likes to play a round of golf with friends and enjoys watching his two sons play various sports.

Peter Davison

Peter graduated from RMIT with a Bachelor of Business (Accountancy) with distinction in 1976. He joined Rundles upon graduating. Peter has been a member of the Institute of Chartered Accountants since 1979 and a Fellow since 1991. As an active yachtie of many years, Peter can often be found on the water. Otherwise, he and his wife spend time with their friends and extended family.

Sandy Gilbert

Sandy was admitted to the Institute of Chartered Accountants in 1973 and has been a Fellow since 1983. He gained extensive experience in auditing and accounting services over seven years at Pannell Kerr Forster before joining Rundles in 1973. Sandy is married with three children. A former amateur footballer of some note, Sandy is still an avid follower of the game and enjoys weekends at his country retreat.