Latest News

Hot Issues
spacer
Benchmarks for small business
spacer
Right to Disconnect
spacer
There’s $18.9 billion in lost and unclaimed super - some may belong to you
spacer
Small businesses remain optimistic despite high stress, report reveals
spacer
Tax and your child’s money: what parents need to know including TFNs
spacer
How to declare minor children’s income
spacer
Net cash flow tax: What is it and what will it mean for SMEs?
spacer
Bribery, brothels, breaches of confidence: ATO officer loses appeal against imprisonment
spacer
Why Culture Matters (Even in Small Teams)
spacer
How to detect and prevent elder abuse when advising older clients: RSM
spacer
Div 296 must be considered ‘holistically’, IPA says
spacer
Working out your Work From Home (WFH) expenses – 2025 Rules
spacer
Accrued leave: take a holiday or take the payment?
spacer
Franchising and Leasing: Legal Issues to Consider When Securing a Location
spacer
Airplane Fuel Consumption Per Minute
spacer
‘Results in paying more tax’: ATO warns Australians against early super access
spacer
Employee or Contractor ?
spacer
Inherited assets: what you need to know about pre-CGT v post-CGT investments
spacer
WHS and OHS Regulatory Update: August 2025
spacer
HECS/HELP debt reduction Bill introduced
spacer
Non deductibility of ATO interest charges for businesses
spacer
How safe is your business from scams
spacer
The biggest earthquakes in history : (1905–2025)
spacer
What Terms Should I Include in a Capital Raising Term Sheet?
spacer
Prepare for Div 296 now, accountants warn
spacer
ATO, lawmakers demand urgent action as GST fraud skyrockets
spacer
5 things smart businesses do to stop copycats
spacer
Do not trust myGov messages
spacer
Regulations have changed for buy now pay later services
Article archive
spacer
Quarter 3 July - September 2025
spacer
Quarter 2 April - June 2025
spacer
Quarter 1 January - March 2025
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
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

www.accountantsdaily.com.au

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb