POWERED BY MOMENTUM MEDIA
AIST welcomes SG charge retention
The Australian Institute of Superannuation Trustees (AIST) has welcomed the retention of the full Superannuation Guarantee (SG) charge.
A last minute amendment to the Treasury Legislation Amendment (Repeal Day 2015) Bill on Wednesday saw the charge retained, following a debate in Parliament.
The charge is a penalty paid by employers who fail to make their SG contributions on time.
AIST chief executive, Tom Garcia, said the SG charge was necessary to protect employees.
"Reducing the penalty also reduces the incentive for employers to pay mandatory super on time," Garcia said.
If the changes went ahead the penalty would have only been calculated on ordinary time earnings and interest would only be payable from the SG due date, significantly reducing the cost to non-compliant employers.
"The SG charge is necessary to protect employees from employer non-compliance which we know is a particular problem in certain industries. Everyone is entitled to receive their superannuation contributions on time," he said.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
