Why the $450 Superannuation Guarantee Threshold will not be removed

A while ago I produced some analysis about who really wins if the $450 Superannuation Guarantee Threshold is removed.

My analysis in that post showed that unless regressive fees charged by superannuation funds like administration and exit fees are removed, it will be the superfund, not the low income earner who wins.  The conclusion of that analysis was that “not only should we remove the $450 Superannuation Guarantee Threshold, but we should also remove the regressive fees such as administration and exit fees, charged by retail and industry super funds alike”.

If you want to see the original analysis, click here

A copy of my analysis was forwarded to The Hon Kelly O’Dwyer MP. Minister for Revenue and Financial Services.  I received a reply from the Income Retirement Policy Division over the Christmas break.

It was interesting to read the Government’s view and especially the comments in the last paragraph of the response which i have included below.

If you want to see the full response, click here

Where to from Here?

It is clear from this, that the government still believes that there remains an administrative burden on businesses to pay superannuation  on workers earning below the $450 Superannuation Guarantee Threshold.

So if we want to remove the $450 Superannuation Guarantee Threshold, then we need to start to focus on the administrative burden now being placed on business to determine who does and does not get guaranteed superannuation contributions.

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Do you and your family a favour and start taking steps so you can improve the health of Your Wealth and get off the treadmill of working till you drop.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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