POWERED BY MOMENTUM MEDIA
Govt warned against further delays to lifting the SG
Just weeks out from the Federal Budget a survey has confirmed continuing strong support for the Government to restore the timetable for lifting the superannuation guarantee (SG) to 12 per cent.
The survey, conducted by Super Review during the recent Conference of Major Superannuation Funds (CMSF), revealed a strong majority of superannuation fund trustees and executives believed restoring the SG timetable would be the most positive outcome from the Budget.
In doing so, the survey confirmed broad cross-industry support for the Government to avoid any further slowing of SG increases with the Financial Services Council (FSC), having earlier this year used its pre-Budget submission to urge removal of the proposed two-year delay in lifting the guarantee to 12 per cent.
The FSC warned that the proposed two-year delay in the scheduled increase in the SG would undermine the effectiveness of the increase.
“For those who are likely to retire over the next decade, the delay detracts from the forecast $39,000 increase in individual retirement savings that they would otherwise have accrued,” the FSC submission said.
“Significantly, the proposed delay to the phasing in of the Super Guarantee to 12 per cent will result in a cumulative impact of around $40 billion less in super savings in the system over the next seven years,” it said. “The FSC strongly recommends that there be no further delays to the increase in the SGC to avoid exacerbating inter-generational pressure on public finances resulting from demographic change in Australia’s population.”
The Super Review survey revealed that nearly 60 per cent of respondents believed that restoring the original timetable for increasing the SG should be the Government’s superannuation priority in the Federal Budget ahead of further clearing the way for more sustainable retirement income products.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
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.
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(%)
