Businesses can afford SG rise
With some businesses electing not to pass on the superannuation guarantee (SG) in addition to current take home pay, analysis from the Association of Superannuation Funds of Australia (ASFA) shows that businesses can afford to pay.
The SG rate would increase from 9.5% to 10% from 1 July and Dr Martin Fahy, ASFA chief executive, said the average Australian worker had not shared in ballooning business profits over the last twenty year.
"The long-overdue increase in the SG will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” Fahy said.
ASFA analysis showed that the Australian economy was currently in the midst of a strong and broad-based recovery from the COVID-19 crisis, with labour market slack down to around pre-crisis levels and expected to continue.
In its recent decision to increase minimum wages in all modern awards, the Fair Work Commission identified Australia’s strong economic recovery from the COVID-19 shock, as well as high business profits, in justifying its decision.
"The Fair Work Commission considered the July increase in the SG and concluded that Australian employers can afford to pay workers the SG rise in full and increase their take-home pay," Fahy said.
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.