Traditional Employment Is Changing, So What About Super?

"I find that it helps to break down the big picture into smaller achievable tasks and to recognise and celebrate these achievements along the way."
-Katherine Hann
October 3, 2017

Traditional Employment Is Changing, So What About Super?

By Katherine Hann

Traditional Employment Is Changing, So What About Super?

According to the Association of Superannuation Funds of Australia (ASFA) there is a ‘gig economy’ trend arising, and it may significantly affect superannuation
and retirement. 

The gig economy is where buyers and sellers of goods and services transact via the web (such as independent contractors or online sellers).

See a recent article by the ABC for a summary of the findings here.

The rise of the gig economy will see a shift towards more independent work arrangements where workers may not be covered by the Superannuation Guarantee
(SG). In the absence of any policy reforms, this will mean lower superannuation balances at retirement for those who receive their income from the likes of Uber, Deliveroo and eBay- or those who have a second job which they work sporadically.

Research by ASFA warned of “sham contracting”, where employers mask an employment agreement as ‘independent contracting’ to evade paying the superannuation guarantee .

ASFA said: “Almost one-quarter of self-employed people have no superannuation” which is undoing many of
the protections Australia has worked so hard to achieve by current policies and laws.

Noting the issues, ASFA is pushing for the SG to remove the $450-a-month in pay threshold before employers are required to pay super, and to enforce employers
who “contract out” workers to start paying Australian employees the super that they are entitled to.

You might think retirement is too far away, however it is never to early to start planning. Even a small
amount extra will make a big difference over forty years. Talk to Katherine Hann on 08 8299 9927 about your super.