POWERED BY MOMENTUM MEDIA
Coalition commits to SG increase
Federal Treasurer Joe Hockey has announced the Government will release draft legislation for the repeal of the Minerals Resource Rent Tax (MRRT), confirming the Coalition will not rescind the increase in compulsory superannuation from 9 to 12 per cent.
"Where the Government specifically outlined that it would keep a spending measure linked to the mining tax, the Government will honour that commitment," Hockey said in a joint statement with Minister for Industry Ian Macfarlane and Finance Minister Mathias Cormann.
"For instance, the Government remains committed to not rescinding the increase in compulsory superannuation from 9 to 12 per cent, currently paused for two years."
The Financial Services Council (FSC) has commended the Government for confirming its commitment to increase the super guarantee (SG) to 12 per cent.
"The Government has a clear mandate to repeal the MRRT whilst retaining the key policy of increasing super contributions to 12 per cent by 2021", said FSC chief executive officer John Brogden.
"FSC research demonstrates that there is a retirement savings gap of over $1 trillion. Increasing superannuation contribution rates are critical in closing this gap and ensuring more Australians have adequate retirement savings."
The Government said the repeal of the MRRT package would contribute more than $13 billion of savings to the Budget's bottom line on an underlying cash basis over the forward estimates.
"The repeal of the MRRT works in tandem with an increase in the SG, which will reduce the Budget impact of an ageing population over the long-term," Brogden added.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
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
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
