POWERED BY MOMENTUM MEDIA
Govt committed to SG increase but expect business pushback
Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume, said the Government is maintaining its commitment to increase the super guarantee (SG) to 12%, but expects business pushback.
The first increase was scheduled to take place from 1 July, 2021, from 9.5% to 10%, followed by 0.5% each year after that.
Speaking at Bloomberg’s The Inside Track webinar, Hume said it was the Government’s intention to increase the SG and they would not deviate from that.
“Having said that, I would not be surprised if we get a lot of pushback when that goes ahead next year from the business community who understand there is a limited amount of money out there to pay employees,” Hume said.
“And when you increase the SG, something has to give, it might be hiring that extra employee or it might be a pay rise.”
Hume said even with industrial relation discussions happening later in the year, it would be difficult to renegotiate any change to the SG increase.
“I don’t want to anticipate what is going to come out of the JobMaker process, that’s an important part of the industrial relations reforms that are necessary to ensure we have a productive economy going forward,” Hume said.
“But it’s already law, so to undo existing legislation is a very difficult process and not one that I think is highly likely.”
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
