QSuper says the passing of new superannuation legislation through Parliament means its members of all ages may gain extra benefits.
Chair of QSuper, Don Luke said the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 could add tens of thousands of dollars to the retirement balances of members as well as assist low-income members to build a superannuation account.
Mr Luke said the new measures included removal of the $450 monthly income threshold for super contributions; a lower age threshold for the super downsizer scheme from 65 to 60; and removal of the super contribution ‘work test’ for those aged from 67 to 74 inclusive.
“Extension of the downsizer scheme to younger members may help provide more flexibility in planning their retirement,” he said.
“It has become a part of the retirement income mix and allows retirees to move to smaller accommodation as their family size drops and to turn the capital tied up in their home to retirement income.”
Mr Luke said QSuper data showed that women, on average, had a retirement balance 27 per cent less than men.
“This legislation means that low-income earners, many of whom are women, will now receive super contributions on all their income,” he said.
“The removal of the $450 income threshold may also mean tens of thousands more in retirement savings for women who reduce their working hours to care for family members.”
Mr Luke said QSuper modelling showed that, with the threshold removed, a 40-year-old who earned $449 per calendar month could have almost $30,000 more in superannuation by age 67.
