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AIST angered over SG rise delay
A super body has expressed displeasure over further delay to the superannuation guarantee (SG) rise to 12 per cent, saying it is another broken election promise not to bring any negative changes to super.
The Australian Institute of Superannuation Trustees (AIST) argued the broken promise comes at a time when the Financial System Inquiry and industry stakeholders are demanding certainty around policy and objectives in super.
"Further delays to the SG timetable will hurt all working Australians and will have a significant effect on their retirement outcomes as well as the ability of the nation to address the fiscal challenges of an aging population," AIST CEO Tom Garcia said.
"Despite assurances otherwise, our superannuation system continues to be subject of constant tinkering."
The comments come as the government struck a deal with the Palmer United Party to repeal the mining tax.
To do this it will freeze the current SG rate at 9.5 per cent until 2021 and then increase at 0.5 per cent a year until it reaches 12 per cent.
Garcia said the AIST is also unhappy the low income superannuation contribution (LISC) scheme will only stay until 2017.
"This is a very disappointing outcome for more than one third of the Australian workforce and they deserve better.
"If the scheme is deemed worthy to retain until 2017, then why can't it remain in place forever?" Garcia said.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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