Industry welcomes 12 per cent superannuation guarantee
The superannuation guarantee (SG) will gradually increase from 9 per cent to 12 per cent over the next seven years, following the passage of the Minerals Resource Rent Tax through the Senate.
The increase in employer contributions to super was broadly welcomed by the industry, with BT Financial Group head of super and platforms Melanie Evans saying it will close the retirement savings gap and leave "more super in peoples' hip pockets".
Financial Services Council chief executive John Brogden said the retirement savings gap would be reduced from $1.02 trillion to $836 billion under a 12 per cent SG.
The Australian Institute of Superannuation Trustees and the Association of Superannuation Funds of Australia also welcomed the boost to the SG, along with the superannuation tax rebate for Australians earning less than $37,000.
The revenue from the Minerals Resource Rent Tax will account for the cost to the budget of superannuation being taxed at 15 per cent (rather than at the peoples' higher marginal tax rate), according to Minister for Financial Services and Superannuation Bill Shorten.
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