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Industry bodies call for commitment to SG increase
Two major superannuation bodies have called for the Government to maintain its commitment to proposed superannuation reforms after Federal Treasurer Wayne Swan recently acknowledged that the reforms would be affected by negotiations with the mining industry on the Resource Super Profits Tax.
The Association of Superannuation Funds of Australia (ASFA) chief executive, Pauline Vamos, and Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds both said the proposed phased increase in the superannuation guarantee (SG) to 12 per cent was critical to allow the nation to compensate for an ageing population.
Vamos said the gradual timeframe of the proposed increase was prudent as it would give all parties time to build the increase into wage and salary discussions, adding that SG “is of paramount importance and … should remain the central plank of the Government’s superannuation policy”.
Reynolds said the Government had a clear mandate to deliver its reform package, and that working Australians would be short-changed in their retirement if the reforms were diluted or delayed.
ASFA noted research conducted by Auspoll that showed more than two-thirds of Australians believed the 9 per cent SG was not enough to fund an adequate retirement, while an AIST poll found more than three-quarters of Australian workers supported the increase.
Support for an increased SG was also highlighted by Westpac’s recent announcement that it would pay the guarantee on paid parental leave contributions for its workforce, a policy supported by ASFA.
ASFA also called on the Government to retain all other measures relating to superannuation announced in the Budget to be retained, including the tax rebate on contributions for low income earners and the maintenance of a higher contributions cap for those aged 50 and over.
AUTHOR
Mike Taylor
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