AustralianSuper Chief Executive Ian Silk said the prospect of an increase in the Super Guarantee (SG) from 9 per cent to 12 per cent had increased as a result of the Federal Government’s announcement on the mining tax.
“This would be great news for working Australians as AustralianSuper research shows that increasing the super guarantee to 12 per cent means the average Australian worker will be able to afford a more comfortable lifestyle in their retirement.
“For example, for a 20 year old earning $40,000 a year, an increase from 9 per cent to 12per cent SG could mean over $90,000* more when they retire,”* Mr Silk said.
The Federal Government has announced that the recommendations of a review into its mineral resource rent tax had been accepted. The new mining tax laws, which will see coal and iron-ore miners pay a resources tax, are expected to go to parliament by the end of the year.
“If passed, this would see the industry closer to that 12 per cent Super Guarantee. This would make a substantial improvement to most people’s retirement living standards and the nation’s overall wealth,” stated Mr Silk.
“We are very supportive of the Government’s commitment to increasing the SG to 12 percent and encourage them to make this a reality sooner rather than later.”
According to Mr. Silk, certain proposals from the Government’s FoFA reforms will also play an important part in benefiting the community. Elements such as annual opt-in and a ban on all volume based remuneration will assist all sectors of the industry to operate in the best interests of its members.
“It is essential that the industry supports these reforms, as they are in the best interests of all Australians and will help to build public trust in the investment industry,” explained Mr. Silk.
“We also urge MPs of all political hues to enact these reforms when the time comes as a matter of utmost national importance.”
AustralianSuper has prepared a petition to support this reform that aims to provide Australians with a better retirement lifestyle through an increase to 12% super. [The petition is now closed]
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*Source: AustralianSuper Retirement Readiness Index 2010 Calculated using AustralianSuper's retirement income calculator as at January 2010, based on AustralianSuper's fees and costs. Assumes: starting age 20; income $40,000, super balance $1,000, retirement age 65, inflation 4%, 7% investment return. Access the calculator at www.australiansuper.com/ric for full assumptions.