POWERED BY MOMENTUM MEDIA
Businesses can afford $1 extra per day for SG increase
The majority of businesses can afford to increase workers’ superannuation by $1 a day per employee, as there has not been a significant wage rise in years, according to a super body.
The Association of Superannuation Funds of Australia (ASFA) has said the National Accounts data reinforced the need for the legislated increase in the super guarantee (SG).
In the June quarter 2020, corporate profits were up 15% (16% higher than the corresponding quarter last year) while wages and salaries were down 2.5%, according to Australian Bureau of Statistics data.
Excluding the mining sector, the quarterly increase in corporate profits was the largest in almost two decades, and the ASX200 had risen 16% over the same period.
ASFA chief executive, Dr Martin Fahy, said: “Once again we see clear evidence that the share of income accruing to business is ballooning while hard pressed workers face the bleak reality of weaker wages for longer.
“At $1 a day per employee, the increase in superannuation is affordable for the majority of businesses and is now critical to allow workers to catch up, given they haven’t seen a significant wage rise in years, and with little possibility of higher wages on the horizon.
“Only the scheduled increase in the superannuation guarantee will provide workers with a pay rise next year and help to address the structural imbalances that continue to occur between fat profits and flat wages.”
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
