The industry has applauded the passing of the mining tax package through the House of Representatives, which will see the superannuation guarantee (SG) increased from 9 per cent to 12 per cent.
In delivering the legislation, Treasurer Wayne Swan claimed the reforms would increase the superannuation of 8.4 million workers, and increase Australia’s savings pool by $500,000 billion by 2035.
Association of Superannuation Funds of Australia chief executive Pauline Vamos welcomed the changes as “good for the economy, affordable, equitable and necessary”.
“Today there are five working people to support each Australian aged 65; by 2050, this is projected to drop to 2.7. An increase in the SG will take the pressure off the age pension and assist more working Australians to a better quality of life in retirement,” Vamos said.
Australian Institute of Superannuation Trustees chief executive Fiona Reynolds applauded the passing of the legislation, along with the increased contributions for lower-income workers.
“This reform, together with the lifting of the SG to 12 per cent, equates an effective contribution rate of nearly 20 per cent for low income earners without them having to make any additional contributions,” Reynolds said.
AMP chief executive Craig Dunn said the lifting of the SG was something AMP had been advocating “for many years”.
“Australia’s ageing population and retirement savings gap places significant pressure on those still in the workforce. This far-sighted measure will help alleviate some of this pressure on future generations,” Dunn said.
