With some businesses electing not to pass on the superannuation guarantee (SG) in addition to current take home pay, analysis from the Association of Superannuation Funds of Australia (ASFA) shows that businesses can afford to pay.
The SG rate would increase from 9.5% to 10% from 1 July and Dr Martin Fahy, ASFA chief executive, said the average Australian worker had not shared in ballooning business profits over the last twenty year.
"The long-overdue increase in the SG will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” Fahy said.
ASFA analysis showed that the Australian economy was currently in the midst of a strong and broad-based recovery from the COVID-19 crisis, with labour market slack down to around pre-crisis levels and expected to continue.
In its recent decision to increase minimum wages in all modern awards, the Fair Work Commission identified Australia’s strong economic recovery from the COVID-19 shock, as well as high business profits, in justifying its decision.
"The Fair Work Commission considered the July increase in the SG and concluded that Australian employers can afford to pay workers the SG rise in full and increase their take-home pay," Fahy said.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
A “concerning” number of Aussies don’t know what they pay in super fees, a young super fund has said.
The corporate regulator has shared some ‘disappointing’ findings upon reviewing the public communications of more than 20 trustees with regards to death benefits.
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