POWERED BY MOMENTUM MEDIA
Ombudsman weighs in on pausing the SG with tax offsets
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has ventured into the political sphere by recommending the deferral of the upcoming rise in the superannuation guarantee (SG) and a cut in taxes on superannuation payments.
In a statement issued today, the former ACT Liberal chief minister, said she had written to the Treasurer, Josh Frydenberg, proposing a two-year deferral of the SG increases alongside a halving of the SG contributions tax from 15% to 7.5% in that time.
She claimed the combined measures would offset each other and ensure workers ended up with an amount similar to that which would have prevailed if the SG increase had gone ahead.
“We have to get the balance right by ensuring small businesses aren’t hit with rising costs and workers are no worse off,” Carnell said. “Many small businesses are already struggling to stay afloat as a result of the COVID-induced recession and cannot afford to pay higher costs.”
“These increased costs would put small business owners under even more financial strain, placing jobs and businesses at risk.
“It is equally important to safeguard the long-term financial future of Australians through superannuation.
“Our modelling shows our proposed tax cut would cost the Government no more than $6 billion per year and would also support struggling small businesses and help the millions of Australians who used the early access to superannuation program to start restoring their long-term super balance,” Carnell said.
“Ultimately, by implementing this proposal, the federal government would be supporting small businesses and all Australians who deserve a dignified retirement.”
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(%)
I don't really think now is the time to be further complicating the superannuation space. We need to accept that we are in extraordinary times and need to make appropriate adjustments always remembering that there are (and always will be) only 100 cents in the dollar.