Retirement
Government renews commitment to proceed with super rate lift to 12%
Retirement
Government renews commitment to proceed with super rate lift to 12%
The government has renewed its commitment to lift the super guarantee rate to 12 per cent without delay.
Government renews commitment to proceed with super rate lift to 12%
The government has renewed its commitment to lift the super guarantee rate to 12 per cent without delay.
Speaking at an Industry Super Australia event, superannuation minister Jane Hume confirmed the government’s intention to proceed with lifting the super rate by 0.5 per cent increments each year until it reaches 12 per cent by 2025.
Asked to guarantee that the government won’t move to overturn future increases if re-elected next year, Ms Hume said, “it can’t without opposition support, and it won’t be because it is already legislated”.
“It’s legislated, it’s done, it’s going ahead. We promised that ages ago and that promise hasn’t changed, the commitment hasn’t changed. It’s there,” she said.
Ms Hume also ruled out making parts of the increase optional.
“It’s not policy. It’s not something that we are considering,” she said.
Industry Super Australia’s chief executive Bernie Dean welcomed Ms Hume’s reiteration.
“We welcome the minister giving an ironclad commitment that a re-elected Coalition government would not alter the super guarantee increase in any way,” Mr Dean said.
Joining Ms Hume at the event, Labor’s financial services spokesman Stephen Jones voiced his scepticism, noting that while the super guarantee was legislated back in 2012, it was frozen for the best part of a decade.
“Labor for its part will say to the Australian people we are 100 per cent committed to ensuring that in every July, between now and 2025, your superannuation contributions will go up by 0.5 per cent of your pay,” Mr Jones said.
The legislation foreseeing an increase in the superannuation guarantee to 12 per cent was passed by the Gillard government in 2012 but was put on ice in 2014 at 9.5 per cent. It wasn’t until 1 July 2021 that the rate eventually received a 0.5 per cent bump to 10 per cent.
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