More to come from Labor on increasing Super Guarantee rate

Superannuation Guarantee rate, 12%, election 2016Labor may be planning to release a policy of faster increases to a 12% Superannuation Guarantee rate later in the election campaign, while the Liberals remain committed to the current schedule.

In a National Press Club debate both Finance Minister Mathias Cormann and Shadow Minister for Finance Tony Burke were asked, given that a 9.5% Super Guarantee (SG) is widely thought to be insufficient, what their policies were on increasing the rate.

Mathias Cormann said the Government was sticking with the currently legislated timetable for increases to the super guarantee rate. The Liberal party went to the 2013 election promising to delay a 12% SG rate by two years. However the legislation passed delayed reaching this rate by 6 years – until 2025/26. Cormann told the National Press Club that the Liberal party “remain committed to that same timetable”.

Delays to increases to the Superannuation Guarantee (SG) rate, MRRT

Tony Burke didn’t reveal the Labor policy on increases to the Super Guarantee rate, saying “further announcements on where we would take that and how we might differ from what the Government is doing is something that we haven’t announced at this point of the campaign. Anything that we’d do would be based on what’s affordable”.

The ALP party platform says the Super Guarantee rate will be ‘fast tracked’ to 12% “when prudent”:

Labor will protect and grow superannuation to provide a comfortable retirement for all Australians. This will include, when prudent, ending the freeze of the Superannuation Guarantee at 9.5 per cent and fast-tracking the Superannuation Guarantee increase to 12 per cent, to provide millions of Australians with higher retirement incomes.

 

Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?

This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.

Leave a Reply

Your email address will not be published. Required fields are marked *