On 1 July 2021, the Superannuation Guarantee (SG) rate will increase from 9.5 per cent to 10 per cent. The change will automatically boost the superannuation contributions of millions of Australian workers.
New analysis from the Association of Superannuation Funds of Australia (ASFA) shows that business can afford to pay the scheduled increase in full, without cutting take-home pay.
“The average Australian worker has not shared in ballooning business profits over the last twenty years,” said ASFA CEO Dr Martin Fahy.
“The long-overdue increase in the Super Guarantee will go some way to address the structural imbalances that continue to occur between fat profits and flat wages.”
ASFA analysis demonstrates that the Australian economy is currently in the midst of a strong and broad-based recovery from the COVID-19 crisis, with labour market slack down to around pre-crisis levels and expected to continue.
In its recent decision to increase minimum wages in all modern awards, the Fair Work Commission identified Australia’s strong economic recovery from the COVID-19 shock, as well as high business profits, in justifying its decision.
“The Fair Work Commission considered the July increase in the SG and concluded that Australian employers can afford to pay workers the SG rise in full and increase their take-home pay,” Dr Fahy concluded.
ASFA calls on all employers to do the right thing for their workers.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.