ASFA – the Voice of Super applauds the comments made by Resources Minister Martin Ferguson that mining companies and unions should immediately increase the Superannuation Guarantee (SG) to 12 percent in the sector.
“This reflects the widespread view that the current rate of superannuation savings is not sufficient to fund workers’ retirements,” said ASFA chief executive Pauline Vamos.
“ASFA reiterates its call for bi-partisan support on increasing SG, as well as for the other superannuation measures announced in the Gillard Government response to the Henry Tax Review including raising the concessional caps for individuals over 50 and a super tax contribution rebate for low-income earners.”
An increase in SG to 12 percent would boost an average worker’s retirement savings by $110,000 and aggregate national retirement savings by half a trillion dollars.
“Without this boost to retirement savings and the Australian economy it will become more difficult for the nation to meet the demands of an ageing population. Superannuation plays a significant role in strengthening the Australian economy,” said Ms Vamos.
“The comments made by Minister Ferguson also underline the fundamental role of superannuation as a driver of economic and fiscal policy in Australia. Raising minimum contributions will have a significant impact on inflationary pressures.”
Research carried out by ASFA shows that $10 billion a year is being paid into the superannuation accounts of Australian workers, in addition to the required 9 percent SG.
“There are employers already paying above the required 9 percent SG,” Ms Vamos said. “These employers recognise that the current SG rate will not be enough to enable working Australians to fund the retirement lifestyle that want and deserve. It also demonstrates that employees are prepared to forgo wage increases in order to grow their superannuation.”
Ms Vamos said that Australia cannot have a two-tier superannuation policy where only some Australian workers are able to meet their adequacy goals.
For further information, please contact:
Pauline Vamos, ASFA Chief Executive, 0433 169 342
Michelle Dunner, ASFA GM Marketing and Communications, 0412 704 016
Sarah O’Grady, ASFA Communications Co-ordinator, 0410 439 966
About ASFA
The Association of Superannuation Funds of Australia (ASFA) is the peak industry body for the entire superannuation sector. It is the only industry body that represents all types of superannuation funds, service providers and fund members.