Minister responsible for superannuation “ambivalent” about SG rate increases

The Minister responsible for superannuation is “ambivalent” about increases to the SG rate, while the PM has suggested such increases may need to be reconsidered due to COVID-19, and the Retirement Income Review is sitting on the Treasurer’s desk. The debate over when, or if, to increase the Superannuation Guarantee rate has reignited. Currently the… Continue reading Minister responsible for superannuation “ambivalent” about SG rate increases

Finance Minister rules out changes to Super Guarantee increases

The Minister for Finance has ruled out changes to the timetable for Superannuation Guarantee increases, something which the PM and other senior Ministers have refused to do. A senior member of the Government has ruled out slower increases to the Super Guarantee rate, following growing speculation that backbenchers will drive the Coalition to stop or… Continue reading Finance Minister rules out changes to Super Guarantee increases

“No plans” to change increases to Super Guarantee rate: Treasurer

Treasurer Josh Frydenberg has repeated that the Government has “no plans” to change the legislated increases to the Super Guarantee rate. Asked on ABC’s Insiders if the Government was committed to increasing the Super Guarantee rate to 12% by 2025, the Treasurer said: “We have no plans to change that legislated increase.” The Super Guarantee… Continue reading “No plans” to change increases to Super Guarantee rate: Treasurer

Morrison must rule out delays to Super Guarantee rate increases: Labor

Labor has called on the Prime Minister to rule out further delays to the legislated increases in the Superannuation Guarantee rate, after reports that backbenchers are agitating for such a delay. Labor’s Shadow Treasurer Jim Chalmers said: “Scott Morrison must rule out calls from his backbenchers to hurt workers saving for a comfortable retirement by… Continue reading Morrison must rule out delays to Super Guarantee rate increases: Labor

Increasing Super Guarantee to cost workers $30,000, claim disputed

With the Super Guarantee rate already legislated to go to 12%, and a government review of the retirement income systems likely, a disagreement has broken out over the impact of increasing the SG rate. The Grattan Institute says that increasing the SG rate from 9.5% to 12% will cost a typical 30 year old worker… Continue reading Increasing Super Guarantee to cost workers $30,000, claim disputed

Super shock: more compulsory super would make Middle Australia poorer, not richer

Written by Brendan Coates, Grattan Institute and Owain Emslie, Grattan Institute. Compulsory superannuation was sold to Australians on the basis that it would make us better off. But as the government prepares for an independent inquiry into retirement incomes, new Grattan Institute research finds that increasing compulsory contributions from 9.5% of wages to 12%, as… Continue reading Super shock: more compulsory super would make Middle Australia poorer, not richer

Superannuation Guarantee rate would have now been 12%

The Superannuation Guarantee rate would now have been 12%, under Labor’s legislated timetable. But, after delays legislated under the Coalition, it remains at 9.5% and won’t reach 12% until 2025. If the Coalition hadn’t froze and delayed increases to the Superannuation Guarantee it would have gone to 12% on 1 July 2019 (up from 11.5%).… Continue reading Superannuation Guarantee rate would have now been 12%

Myth busted. Boosting super would cost the budget more than it saved on age pensions

Written by Brendan Coates, Grattan Institute. It is often claimed that Australia’s superannuation system will ease the budgetary burden of an ageing population. It’s certainly the impression put about by those pushing for an increase in employers’ compulsory contributions from 9.5% to 12%. But new estimates suggest that for up to a century that wouldn’t… Continue reading Myth busted. Boosting super would cost the budget more than it saved on age pensions

Overwhelming support for 12% Super Guarantee rate by 2025

There is “overwhelming” support for increasing the Super Guarantee rate to 12% by 2025, polling commissioned by the Association of Superannuation Funds of Australia (ASFA) has found. The polling found 79.9% support (either ‘strongly support’ or ‘support’) for gradually increasing the Superannuation Guarantee rate from its current 9.5% to 12% by 2025 – the currently… Continue reading Overwhelming support for 12% Super Guarantee rate by 2025

Easier for Millennials to save a home deposit without Super Guarantee

The Centre for Independent Studies argues that younger people would find it easier to save for a home deposit with lower levels of compulsory superannuation contributions. The Centre for Independent Studies (CIS) policy paper, Millennials and Super: the case for voluntary superannuation, doesn’t make any firm recommendations, but does strongly suggest that compulsory superannuation –… Continue reading Easier for Millennials to save a home deposit without Super Guarantee