Will the Budget hit the gig economy?
The Government may use tonight’s Federal Budget to address the impact of the so-called “gig economy” on the superannuation guarantee (SG).
Principal consultant, Legal and Risk with consulting firm, QMV, Jonathan Steffanoni has pointed to action with respect to the gig economy as being one the few superannuation related measures possibly included in the Budget.
“Growth in the Gig Economy and single worker businesses may see policy changes related to the self-employed, independent contractors and dependent contractors as a means of protecting the coverage of mandatory SG employer contributions,” he said.
As well, Steffanoni suggested the SG $450 minimum threshold might also be in the Budget crosshairs as a means of ensuring coverage for low income workers, with advances in technology making the administration costs for employers mostly redundant.
Steffanoni also noted there had been indications the Government might move to further defer or abandon increases in the SG to reach 12 per cent by 2025, but suggested this would prove to be political polarising.
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