The growing gig economy risks leaving more workers excluded from receiving superannuation payments and poses a challenge to policymakers reviewing the retirement system.
The Actuaries Institute has warned the growth of on-demand or gig jobs, like Uber and Deliveroo, pose a “new set of problems” for Australian workers in these jobs as they are often not paid the superannuation guarantee and are more likely to need the age pension.
A major concern raised by the professional body in a submission to the government’s retirement income review is that gig workers are often casuals, typically contractors rather than employees, and may take several jobs each paying less than the $450 threshold at which an employer is required to pay the super guarantee.
This could leave taxpayers supporting more people falling back onto the age pension at a time when there is a falling ratio of workers to retirees, the Institute said, suggesting everyone should be covered by the super guarantee. Removing the $450 threshold has been a common proposal in many submissions into the review.