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ASFA supports Ferguson’s call for action
The Association of Superannuation Funds of Australia (ASFA) has supported comments from Resources Minister Martin Ferguson that mining companies and unions should immediately increase the superannuation guarantee (SG) to 12 per cent across the sector.
The comments underline the fundamental role of superannuation as a driver of economic and fiscal policy in Australia, according to ASFA chief executive Pauline Vamos.
“Raising minimum contributions will have a significant impact on inflationary pressures,” she said.
ASFA research shows around $10 billion per year is being paid into the superannuation accounts of Australian workers, above the mandated 9 per cent.
“There are employers already paying above the required 9 per cent SG. These employers recognise that the current SG rate will not be enough to enable working Australians to fund the retirement lifestyle that they want and deserve. It also demonstrates that employees are prepared to forgo wage increases in order to grow their superannuation,” Vamos said.
Australia cannot have a two-tier superannuation policy where only some Australian workers are able to meet their adequacy goals, she added.
Vamos also reiterated her call for bipartisan support on increasing the SG, as well as other superannuation reforms, including raising the concessional caps for individuals over 50 and a super tax contribution rebate for low-income earners.
AUTHOR
Mike Taylor
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