POWERED BY MOMENTUM MEDIA
Private sector workers losers of SG increase
Most private sector workers will suffer a pay cut if superannuation guarantee (SG) increases are pushed through, with the financial services industry reaping the rewards of the change, chartered accountant Wayne Wanders has warned.
Wanders said that total remuneration packages for private employees would likely not change, meaning that getting more superannuation would mean getting less salary.
For an employee on a $60,000 annual salary inclusive of super, this would represent a $1,223.09 salary reduction.
“In non‐unionised private sector workplaces, the employer does not typically want to be beholden to the federal government about what pay increase an employee should get,” Wanders said, meaning they would be unlikely to increase salaries.
He said that it was the financial services industry, rather than the public, who wanted SG changes.
“You can see why the financial services industry want the change. They get a 23.5 per cent increase in contributions before tax and probably a 20 per cent increase in fee income,” Wanders said.
“But … which non‐unionised private sector workers want to have their take home pay reduced by 2.2 per cent today, on a politician’s promise of more super in the future? Very few people. And that’s why most private sector workers don’t want superannuation guarantee increases.”
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
96.54 3 y p.a(%)
2
DomaCom DFS Mortgage
85.26 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
