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
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
