SPAA urges no Coalition super guarantee deferral
The SMSF Professionals' Association of Australia (SPAA) has urged the Coalition not to defer the Labor Government's planned increase in the Superannuation Guarantee (SG) if it wins government at the election scheduled for 15 September 2013.
The increase, which is intended to take the SG from 9 per cent to 12 per cent over the next six years, is set to commence with the first increase of 0.25 per cent to take effect on 1 July.
However, in his Budget reply last week, Opposition leader Tony Abbott said that a Coalition Government would delay that SG increase by two years, saving the Budget $1.1 billion.
Graeme Colley, head of technical and professional standards for SPAA, said that any decision to defer an increase in the SG would simply reduce the adequacy of Australians' retirement savings.
"SPAA would ask the Coalition to think carefully about such a move, especially in light of its recent commitment not to make any changes to superannuation," he said.
Colley said that the Coalition's policy, if implemented, would affect the superannuation savings of 8.4 million Australians, with the two-year delay meaning super contributions would only reach 12 per cent by 1 July 2021.
Colley added that for many employers there will be no increase in costs, as a higher SG will be funded from employees' salaries and will actually reduce the amount of take-home pay.
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