Changes to super guarantee rate passed
Legislation has been passed through Parliament to increase the Superannuation Guarantee Levy from 9% to 12%.
The increase was supported by the Financial Services Council, which argued it was necessary to reduce the estimated Retirement Savings Gap from $836 billion to $768 billion. A research report by Rice Warner Actuaries, released by the FSC, showed that without the increase in the Superannuation Guarantee contribution rate to 12% the estimated RSG would be $184 billion higher at $1,020 billion.
However, the Australian Industry Group has called for the Government to immediately introduce amendments to the Fair Work Act requiring Fair Work Australia to take the increased levy into account when determining minimum wage increases.
Ai Group Chief Executive Heather Ridout said it was also “vital that Minister Shorten urge employers and unions to take the increased levy into account when negotiating enterprise agreement wage increases.”
“This is important. Unless the Government expresses its support for this, unions are likely to oppose any absorption of the increases into the wage increases which would have otherwise been paid.
"Such fair and sensible measures would reduce the negative impacts of the cost increases on businesses and the economy.
"Throughout the period when the Superannuation Guarantee Levy was originally phased in from 3% in 1992 to 9% in 2002, the federal workplace relations legislation included a section (90A) which required the Tribunal to have regard to the Superannuation Guarantee Levy when making national wage case decisions. A similar provision should be included in the Fair Work Act," Mrs Ridout said.
The increased SGR will be phased in over the next seven years, beginning with a rise to 9.25% from 1 July 2013.
The increase schedule is as follows:
Year 1 starting 1 July 2013: 9.25%
Year 2 starting 1 July 2014: 9.5%
Year 3 starting 1 July 2015: 10%
Year 4 starting 1 July 2016: 10.5%
Year 5 starting 1 July 2017: 11%
Year 6 starting 1 July 2018: 11.5%
Year 7 starting 1 July 2019: 12%