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.”
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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