Retirement
Why it’s the right idea but wrong time to lift the SG
As Australia surfaces from its first economic recession in almost three decades, the focus should be on creating new jobs instead of lifting the superannuation guarantee, an accounting body has said.
Why it’s the right idea but wrong time to lift the SG
As Australia surfaces from its first economic recession in almost three decades, the focus should be on creating new jobs instead of lifting the superannuation guarantee, an accounting body has said.
With rumours continuing to swirl that the Morrison government will pause the planned compulsory super guarantee hike, Chartered Accountants Australia have released a statement defending the PM, opining that the pause is not a backflip, nor a broken promise, but an economic plan that makes sense.
Noting that while it is the right idea to lift the superannuation guarantee at some point, the current timing is wrong, the CA judged.
“The thing about a game changer like a global pandemic is that it changes the game, which is why we need to call a timeout and look at the current state of play,” CA ANZ’s superannuation leader, Tony Negline, said.
Mr Negline opined that the Australian economy needs to hold the rate of superannuation until Australia has decreased its 6.6 per cent unemployment rate.
“Super is a percentage of a salary, and you need a job to get a salary,” Mr Negline noted.
“The priority right now should be keeping people who have them in jobs, and helping the unemployed get new ones."
Mr Negline cited recent research and the Retirement Income Review, which found that increases in employer superannuation contributions often mean employee salary and wages increase at a slower rate.
“To say that we need to increase the super rate right now while we are still navigating out of this pandemic is to focus on the very pointy end of Maslow’s hierarchy of needs, while everyone else is in survival mode,” he said.
Labor commits to lifting the SG
While the Liberal Party has not said whether or not it will commit to the legislated increase, the leader of the opposition, Anthony Albanese, said if his government is elected, he will go ahead with superannuation guarantee lift.
In a statement to media, Mr Albanese committed to protecting the workforce from industrial relation changes as well as holding the rate of superannuation at 12 per cent.
“Anthony Albanese’s pledge today to back in already-legislated rises in superannuation contributions to 12 per cent means wage earners can have the confidence to plan for a dignified retirement,” a statement reads.
“Scott Morrison, who promised to raise superannuation contributions to 12 per cent at the last election but broke his word and is now planning to repeal his own legislation.”
RELATED ARTICLES
About the author
About the author
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
