RBA forecasts have 80% of Super Guarantee increases coming out of wages growth

The RBA, when preparing its forecasts, is working on the basis that 80% of the cost of increased Super Guarantee for private sector workers is passed on as slower wages growth. Appearing before a House of Representatives Committee, Dr Luci Ellis, Assistant Governor (Economic) with the RBA, said the forecasts “assumed a partial passthrough” of… Continue reading RBA forecasts have 80% of Super Guarantee increases coming out of wages growth

Industry Super launches campaign in support of 12% SG rate

Industry Super Australia has launched a new advertising campaign, in support of increasing the Super Guarantee rate to 12% – a subject of intense current debate. Industry Super Australia (ISA) says the aim of the campaign – which will run through to June across TV, radio, online and other platforms – is to “lift awareness”… Continue reading Industry Super launches campaign in support of 12% SG rate

Closing Eligible Rollover Funds to raise $143 million for the Budget

The Government’s plan to effectively close Eligible Rollover Funds (ERFs) is estimated to raise $143 million for the Budget. Late last year the Government announced it would move to effectively shut down ERFs by mid-2021. This would be done in three stages, first ERFs would be allowed to voluntarily transfer amounts to the ATO, then… Continue reading Closing Eligible Rollover Funds to raise $143 million for the Budget

Frozen Super Guarantee rate has cost median worker $4,333 so far

Having the the Superannuation Guarantee rate frozen at 9.5% has cost the median worker more than $4,000 over the past five years, and the losses are likely to continue, analysis by Per Capita has found. The Superannuation Guarantee rate has been frozen at 9.5% for several years, though it’s legislated to gradually increase and reach… Continue reading Frozen Super Guarantee rate has cost median worker $4,333 so far

Keep SG rate at 9.5%, reduce tax concessions to fund health: ACOSS

ACOSS has recommended freezing the Super Guarantee rate at 9.5%, while winding back superannuation tax concessions to fund health and aged care services. The Australian Council of Social Service (ACOSS), in a submission to the Review of Retirement Income, and drawing on the work by the Grattan Institute, recommends the Super Guarantee rate remain at… Continue reading Keep SG rate at 9.5%, reduce tax concessions to fund health: ACOSS

ASIC SMSF fact sheet “misleading”, BGL analysis finds

Software maker BGL has challenged data in ASIC’s fact sheet sent to new SMSF trustees, finding the annual cost of running an SMSF is much lower. Last year ASIC announced it would be trailing sending a fact sheet to new SMSF trustees. This fact sheet included a number of warnings, including that “generally, balances under… Continue reading ASIC SMSF fact sheet “misleading”, BGL analysis finds

80% of cost of Super Guarantee rate increases passed on as lower wages

New economic modelling by the Grattan Institute finds that around 80% of the cost of increasing the Super Guarantee rate is passed on to workers as lower wages. Part of the ongoing debate about increases to the Super Guarantee rate has been about how much, if any, of the cost is paid by workers. The… Continue reading 80% of cost of Super Guarantee rate increases passed on as lower wages

Draft legislation for 22 Banking Royal Commission recommendations released

The Government has released draft legislation for consultation in response to 22 recommendations, and ‘additional commitments’, from the Banking Royal Commission. Treasurer Josh Frydenberg said the Government is “on track” to have almost 90% of the Royal Commission recommendations at least introduced to Parliament – not necessarily legislated – by mid-2020 and all adopted recommendations… Continue reading Draft legislation for 22 Banking Royal Commission recommendations released

Changes to default super coming before end of 2020: Assistant Minister

Changes to the system of setting default super funds are coming by the end of 2020, according to Assistant Minister Jane Hume, though it’s unclear if the Government has settled on a model to implement. Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, has flagged changes to the default super system, while… Continue reading Changes to default super coming before end of 2020: Assistant Minister

Labor may support super choice expansion, despite union opposition

Labor may be more open to expanding super choice rules than unions and industry super funds. There is currently a Bill before Parliament – the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 – which would expand the number of employees who can choose which super fund receives their employer super contributions. A Senate… Continue reading Labor may support super choice expansion, despite union opposition