POWERED BY MOMENTUM MEDIA
Coalition commits to SG increase
Federal Treasurer Joe Hockey has announced the Government will release draft legislation for the repeal of the Minerals Resource Rent Tax (MRRT), confirming the Coalition will not rescind the increase in compulsory superannuation from 9 to 12 per cent.
"Where the Government specifically outlined that it would keep a spending measure linked to the mining tax, the Government will honour that commitment," Hockey said in a joint statement with Minister for Industry Ian Macfarlane and Finance Minister Mathias Cormann.
"For instance, the Government remains committed to not rescinding the increase in compulsory superannuation from 9 to 12 per cent, currently paused for two years."
The Financial Services Council (FSC) has commended the Government for confirming its commitment to increase the super guarantee (SG) to 12 per cent.
"The Government has a clear mandate to repeal the MRRT whilst retaining the key policy of increasing super contributions to 12 per cent by 2021", said FSC chief executive officer John Brogden.
"FSC research demonstrates that there is a retirement savings gap of over $1 trillion. Increasing superannuation contribution rates are critical in closing this gap and ensuring more Australians have adequate retirement savings."
The Government said the repeal of the MRRT package would contribute more than $13 billion of savings to the Budget's bottom line on an underlying cash basis over the forward estimates.
"The repeal of the MRRT works in tandem with an increase in the SG, which will reduce the Budget impact of an ageing population over the long-term," Brogden added.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
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 of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
