Businesses can afford SG rise

18 June 2021
| By Chris Dastoor |
image
image
expand image

With some businesses electing not to pass on the superannuation guarantee (SG) in addition to current take home pay, analysis from the Association of Superannuation Funds of Australia (ASFA) shows that businesses can afford to pay.

The SG rate would increase from 9.5% to 10% from 1 July and Dr Martin Fahy, ASFA chief executive, said the average Australian worker had not shared in ballooning business profits over the last twenty year.

"The long-overdue increase in the SG will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” Fahy said.

ASFA analysis showed that the Australian economy was currently in the midst of a strong and broad-based recovery from the COVID-19 crisis, with labour market slack down to around pre-crisis levels and expected to continue.

In its recent decision to increase minimum wages in all modern awards, the Fair Work Commission identified Australia’s strong economic recovery from the COVID-19 shock, as well as high business profits, in justifying its decision.

"The Fair Work Commission considered the July increase in the SG and concluded that Australian employers can afford to pay workers the SG rise in full and increase their take-home pay," Fahy said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predict...

20 hours ago

Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one ...

20 hours ago

Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns a...

20 hours ago

TOP PERFORMING FUNDS