POWERED BY MOMENTUM MEDIA
Gig economy to uncover more super concerns
The rise of a gig economy where buyers and sellers are matched on web-based platforms will negatively challenge the effectiveness of the current superannuation system for contract employees, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA has today released a discussion paper in which chief executive Martin Fahy pointed to concerns for independent contractors and self-employed workers not covered by the superannuation guarantee (SG).
“Workers who already operate under some form of independent work arrangement – such as independent contractors – will migrate onto web-based platforms and new gig economy jobs will be created,” Fahy said.
“However, the current superannuation settings are not suited to these trends.”
ASFA found self-employed workers had lower superannuation balances than employees across every age distribution. In the run-up to retirement between ages 60 and 64, self-employed workers were expected to have just have the amount of super held by salary workers.
“For affected workers and in the absence of any policy reforms, a growing gig economy would mean lower superannuation balances at retirement,” Fahy said.
“This would reduce the broader adequacy of the superannuation and retirement income system.”
The ASFA discussion paper outlined proposals for the adjustment of current settings which included:
- Extension of the coverage of the SG to independent contractors and the broader group of self-employed workers; and
- Removal of the $450-a-month wages threshold for the SG to be paid to employees.
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(%)
