POWERED BY MOMENTUM MEDIA
Wage boost promises were not kept in 2014 when SG froze
The wage boost promise, when the superannuation guarantee was frozen in 2014, never materialised and workers were not compensated for their lost super, according to an enterprise bargaining agreement (EBA) analysis.
The analysis of 8,370 EBAs conducted by Industry Super Australia (ISA), found that while thousands of agreements were locked in place when the SG freeze was announced, most employers saw little need to renegotiate them to pass on the lost super as higher wages.
ISA noted that politicians were again claiming that cutting next year’s legislated 0.5% SG rise would lead to higher wages.
“The economic downturn makes wage rises far less likely now and most economists now concede that Australian workers are not going to receive any real wage growth over the coming years – making the super rate increase the only pay rise on offer for most workers,” ISA said.
“A worker on the cusp of retirement has already lost about $100,000 from previous super guarantee delays, further pauses will compound the losses.
“It is unfair that some politicians – who receive more than 15% super contributions – are once again cruelly asking workers to sacrifice their chance for security and dignity in retirement for nothing in return.”
The rate was scheduled to rise to 10% in 2015, and 0.5% each year after until it reached 12% in 2019. ISA said the delay could cost the average full-time worker in their 30s, $45,000 at retirement.
“The pay cut persisted for years, once those agreements expired the new deals did not include catch up wage increases to compensate for the lost super,” ISA said.
“In agreements certified after the super rate was cut, wage growth fell from 3.33% before the cut to 3.27%. This shows employers pocketed the lost super and workers’ total remuneration also went backwards.
“This paper confirms what Australians already knew, that most employers do not voluntarily return the loss of mandatory super payments as wages and the 2014 super freeze left workers worse off.”
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
