Industry calls for Government to maintain SG commitment
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Two major superannuation bodies have called for the Government to maintain its commitment to superannuation reform, including a lift in the superannuation guarantee (SG) to 12 per cent, following the recent acknowledgement by Federal Treasurer Wayne Swan that proposed reforms would be impacted by negotiations with the mining industry on the Resource Super Profits Tax.
The Association of Superannuation Funds of Australia (ASFA) chief executive, Pauline Vamos, said that spending the money now to raise the SG would reap rewards in the future, while the Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds said Australians would be short-changed if the lift in the guarantee was abandoned.
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, and Reynolds said the Government had a “clear mandate” to deliver its reform package.
Both Vamos and Reynolds highlighted the ongoing challenges of our ageing population as a reason the increased guarantee was a necessary measure.
ASFA noted research conducted by Auspoll that showed more than two-thirds of Australians believe the 9 per cent SG is not enough to fund an adequate retirement, while an AIST poll found more than three-quarters of Australian workers support 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.
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