The industry has backed the Government’s move to increase the superannuation guarantee (SG) to 12 per cent.
The Association of Superannuation Funds of Australia (ASFA) described the tabling of the Bill in parliament as “an historic moment for the country”.
ASFA chief executive Pauline Vamos applauded the Government’s proposed legislation, and said the increase was affordable and designed to minimise the effect on employers.
“Employers and employees will have an extended period to negotiate the increase as part of wage negotiations. The increase is over seven years in very small increments,” Vamos said.
She added that the increase in the SG would reduce Australia’s rates of poverty in retirement, which are particularly high by OECD standards.
Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds pointed to an Essential Media poll which showed that 70 per cent of all Australians supported the increase in the SG to 12 per cent.
AIST research has also found that lifting the SG will improve the replacement ratio (income received in retirement as a percentage of working income) from 50 per cent to as much as 70 per cent.
“This legislation deserves the support of all Parliamentarians, not only because most Australians want it, but because it will help build our national savings and ensure that future generations are not crippled under the financial burden required to support our rapidly ageing population,” Reynolds said.
Industry Super Network chief executive David Whiteley urged both houses of Parliament to support the legislation.
“More than 3.6 million lower income earners are set to benefit from the low income superannuation tax rebate of up to $500 per annum,” he said.
AustralianSuper chief executive Ian Silk welcomed the legislation and called for “cross-party support to pass the bill as a matter of utmost national importance”.
