More detail needed on Coalition's super policy: AIST
The Australian Institute of Superannuation Trustees (AIST) has called for the Coalition to give more detail on its own superannuation policy, especially if the party refuses to accept the proposal to raise the superannuation guarantee.
“It’s not good enough for the Coalition to simply quote selected comments from the Henry Tax Review, when Dr Henry himself warned that the Review should be considered in its entirety,” said AIST chief executive Fiona Reynolds.
Reynolds questioned how future generations of taxpayers would be able to fund the needs of Australia’s rapidly ageing population.
“If the Coalition has the solution to these demographic challenges, then let’s hear it,” she said.
AIST modelling shows that the vast majority of taxpayers would have less super and experience a drop in take-home pay under Henry Review recommendations compared to the Government’s super reform package, which includes a super rebate for low-income earners, Reynolds said.
Henry recommendations also include the need for complex data matching requirements on behalf the Australian Taxation Office, she added.
An increase in the SG would not overly harm employers and history has shown businesses were not unduly affected by past SG increases, which were far greater and less gradual, she said.
The first 0.25 per cent rise would not take effect until 2013 and would amount to $3 per week for the average wage earner, Reynolds said.
“It’s hard to argue that such a rise will be a huge impost on either wage costs or take-home pay, particularly when real wages are expected to have increased by more than 6 per cent by 2013-14,” she said.
AUTHOR
Ashleigh McIntyre
Recommended for you
Australia’s average superannuation balance has climbed to a record high, with women’s savings share rising and reliance on the age pension falling.
APRA has softened several governance reform proposals following extensive consultation with banks, insurers and super funds across Australia.
The super fund’s CEO has confirmed he will finish his role in 2026.
New data shows millions of Australians have little idea how their super funds have performed over the past year.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
