Private sector workers losers of SG increase
Most private sector workers will suffer a pay cut if superannuation guarantee (SG) increases are pushed through, with the financial services industry reaping the rewards of the change, chartered accountant Wayne Wanders has warned.
Wanders said that total remuneration packages for private employees would likely not change, meaning that getting more superannuation would mean getting less salary.
For an employee on a $60,000 annual salary inclusive of super, this would represent a $1,223.09 salary reduction.
“In non‐unionised private sector workplaces, the employer does not typically want to be beholden to the federal government about what pay increase an employee should get,” Wanders said, meaning they would be unlikely to increase salaries.
He said that it was the financial services industry, rather than the public, who wanted SG changes.
“You can see why the financial services industry want the change. They get a 23.5 per cent increase in contributions before tax and probably a 20 per cent increase in fee income,” Wanders said.
“But … which non‐unionised private sector workers want to have their take home pay reduced by 2.2 per cent today, on a politician’s promise of more super in the future? Very few people. And that’s why most private sector workers don’t want superannuation guarantee increases.”
Recommended for you
Super trustees need to be prepared for the potential that the AI rise could cause billions of assets to shift in superannuation, according to an academic from the University of Technology Sydney.
AMP’s superannuation business has returned to outflows in the third quarter of 2025 after reporting its first positive cash flow since 2017 last quarter.
The major changes to the proposed $3 million super tax legislation have been welcomed across the superannuation industry.
In holding the cash rate steady in September, the RBA has judged that policy remains restrictive even as housing and credit growth gather pace.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Lakehouse Small Companies
152.92 3 y p.a(%)
3
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
4
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
5
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
