Superannuation Guarantee (SG)

Union royal commission likely to recommend SG changes

Union royal commission, superannuation guaranteeThe interim report of the Union Royal Commission has ‘foreshadowed’ that the final report is likely to include a recommendation that more employees be given choice of which fund receives their superannuation guarantee contributions.

The interim report of the the Royal Commission into Trade Union Governance and Corruption was tabled on Friday the 19th of December. Amoung other potential recommendations it says:

It is desirable to foreshadow a recommendation in the Final Report that sub-paragraphs (d) and (h) be deleted from s 32C(6) of the Superannuation Guarantee (Administration) Act 1992 (Cth).

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Union royal commission considering changes to super choice

Super choice - trade union royal commissionThe Royal Commission into Trade Union Governance and Corruption may recommend changes to the super choice rules.

The Counsel Assisting Submissions to the Royal Commission include a recommendation that super choice should be extended to employees covered by collective and enterprise agreements.

Under the current super choice rules many employees may choose which fund receives their employer superannuation contributions. However this choice can be overridden.

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ATO reminder: superannuation guarantee rate increased

increased superannuation guarantee rateThe ATO has reminded employers that the superannuation guarantee rate has increased, ahead of the due date for employer superannuation contributions.

“Employers must pay super guarantee contributions for each eligible employee at least four times a year and the first quarterly contributions need to be paid by 28 October,” said ATO Assistant Commissioner Ms Haines.

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Contractor drivers are employees for super guarantee: ATO

Contractor or employees - super guaranteeThe ATO has issued an Interpretative Decision setting out when superannuation guarantee can be owed for people who are called ‘independent contractors’.

This is contained in ATO ID 2014/28: Superannuation Guarantee Status of the Worker: Pizza delivery drivers as employees.

The question addressed in the decision was:

“Are pizza delivery drivers, who are required to provide and maintain their own motor vehicles in performing their deliveries, employees for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA)?”

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Only 29% approve of slower increase in super guarantee

An Essential Research poll has found that only 29% of those asked approve of slower increases in the superannuation guarantee rate.

Q. As part of the agreement to dump the mining tax, increases to compulsory superannuation have been deferred. Instead of increasing to 12% by 2019 they will remain at 9.5% until 2020. Do you approve or disapprove of this change to superannuation?

In response to this question 49% disapproved, 29% approved and 23% didn’t know.

Poll - Approve Disapprove change to slow superannuation guarantee rate

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Super guarantee delay will hinder retirement, says industry

Superannuation guarantee delay 9.5% 12% hinder retirementSuper funds, industry groups and unions have attacked the further delay in increasing the superannuation guarantee from 9.5% to 12%, and the only temporary reprieve for the LISC.

The deal between the government and senators, including the Palmer United Party, will hold the super guarantee rate at 9.5% until 1 July 2021, with it reaching 12% from 1 July 2025.

“The implementation of a measure, which will significantly reduce the retirement savings of a large number of working Australians, is very disappointing,” said AustralianSuper Chief Executive Ian Silk. He went on to say that “this move, at a time when the issue of adequate retirement savings is one of the key economic challenges faced by the nation, is counter-productive and will damage confidence in the superannuation system”.

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Clive Palmer wrong that 50% will die before accessing super

Clive Palmer 50% die before superannuationThe Actuaries Institute have said that Clive Palmer was wrong when he said more than 50% of Australians will die before they can access their superannuation.

This follows from a deal the government made with senators, including members of the Palmer United Party, to repeal the Minerals Resources Rent Tax and further slow the rate of increase in the superannuation guarantee.

Talking about the deal Mr Palmer has been variously quoted as saying that up to 50% and more than half of Australians would die before they accessed their super.

In response the president of the Actuaries Institute, Daniel Smith, has said that this statement was incorrect.

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Keating calls changes to super guarantee “wilful sabotage”

Superannuation Guarantee - KeatingIn response to the changes made by the Government to further delay the increase in the superannuation guarantee to 12%, former Prime Minister Paul Keating said:

“Yesterday’s decision represents nothing other than the wilful sabotage of the nation’s universal savings scheme. And sabotage for reasons only of prejudice.”

According to Keating a superannuation guarantee rate of 9.5% over 35 years for someone earning between $ 100,000 and $ 150,000 will provide 50% of pre-retirement income in retirement. “This is way below the 70% of pre-retirement income replacement a Superannuation Guarantee at 12% would provide,” said Keating.

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Superannuation guarantee to stay at 9.5% until July 2021

Government changes to legislation mean that the superannuation guarantee is likely to stay at 9.5% until 1 July 2021, and only reach 12% in July 2025.

The Government made a deal with the Palmer United Party to pass the repeal of the Minerals Resource Rent Tax. As part of the deal the LISC will be kept for a couple more years, but increases in the superannuation guarantee will be further slowed.

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Treasurer wants power to set superannuation guarantee rate

Treasurer  - Minerals Resource Rent Tax repeal superannuation (MRRT), superannuation guarantee, low income super contribution (LISC)The Government has introduced a bill to the Parliament which would give the Treasurer the power to set the superannuation guarantee rate by legislative instrument.

This is contained in the Minerals Resource Rent Tax Repeal and Other Measures Bill 2014, which is the third attempt to repeal the MRRT, change the rate of the super guarantee and repeal the Low Income Superannuation Contribution (LISC).

On Monday, first the Government moved to set aside the second MRRT repeal bill, after the Senate insisted on keeping the LISC and the currently scheduled increases in the super guarantee. Then at 12:36 pm the new bill was introduced to the Parliament, by just after 2:00 pm it had passed the House of Representatives.

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