Investment Magazine
 

Super and consumer experts debate the SG increase

  • 2 November, 2011
  • 0
  • print

The Federal Government’s plan to lift the Superannuation Guarantee (SG) from its current 9 per cent to 12 per cent unsurprisingly has widespread industry support. But it might be a surprise for some in the industry that the plan does not have universal and unequivocal community support.

The super debate begins

Legislation giving effect to the increase was introduced into Parliament today.

Opposition to the move predictably comes from the other side of politics. The Shadow Minister for Financial Services and Superannuation, Mathias Cormann, was involved in a Senate Estimates hearing on the day of a roundtable hosted by Investment Magazine and sponsored by Challenger, but the Opposition Leader’s chief of staff issued a statement.

It said: “As you know, the Coalition’s position is clear and we do not support the super increase funded from the mining tax.”

But reservations also have been expressed by those representing low-income-earners and workers with broken employment patterns (particularly women) – and out in the electorate, raising the SG is far from the sure-fire election winner some think it should be.

Eva Cox, the well-known feminist and convenor of the Women’s Equity Think Tank (WETT), is another opponent of the plan, but purely on equity grounds.

“Why don’t I support the increase? Because, I think the system itself is unfair because it puts an enormous amount of money into the pockets of the rich, and much less into the pockets of the less well off,” Cox says.

“I can’t see any reason why public money should be forgone on that sort of basis, and I think putting it up to 12 per cent is actually not going to do anything about the equity issues; it’s just going to make them worse.

“I’m a long-term feminist, and convenor of [the] Women’s Equity Think Tank, but at the moment I’m also attached to the Aboriginal Unit at UTS [University of Technology, Sydney], and I don’t think it’s going to do a damn thing for people in that area, either.”

The general philosophy behind increasing the SG is simple, says the Minister for Financial Services and Superannuation, Bill Shorten.

“There is little benefit in working for a long time and retiring poor,” he says.

Small business might be expected to oppose the plan too, but the chief executive of the Council of Small Business of Australia (COSBOA), Peter Strong, says the council frankly does not care if the SG is 9 per cent or 12 per cent or even 15 per cent; what COSBOA objects to is the administrative burden the SG already places on small business, which will not be alleviated.

Pages: 1 2 3 4 5 6 7 8 9 10

© Copyright: Whole articles from this website and newsletter cannot be reproduced without permission from the editor. If you wish to publish introductions to any article please ensure that it links to original content site www.investmentmagazine.com.au, and that it shows clear attribution to Investment Magazine, plus author name and date. Failure to abide by this request will be considered a breach of copyright and legal action will be taken.

Vote
Is core property and global infrastructure heading for a price bubble?
 
in News

Cbus wants impact study of pension at age 70

Cbus is to undertake an examination into the potential impacts on its members of shifting the pension age to 70. The fund has ... [more]

in News

Door opens onto full Chinese equity market

The diversity of Chinese equity portfolios is to increase when the number of companies accessible to foreign investors doubles at the end of ... [more]

in News

The great post-retirement opportunity

Australia has the opportunity to lead the world in post-retirement products and export its know-how, according to Moshe Milevsky, the internationally renowned author ... [more]

in News

Super Fund Awards’ finalists announced

The finalists of the Chant West/Conexus Financial Super Fund Awards have been announced by the research house Chant West. The fund ratings firm ... [more]

in News

New Vision Super CIO to target investment costs

Michael Wrysch has been tasked with reducing Vision Super’s investment costs as part of his new role as chief investment officer of the ... [more]

NGS rebrand – ‘for those who understand the true meaning of wealth’

A week after trustees of industry funds were warned that without a brand strategy they would not survive the ‘medium term’, NGS Super ... [more]

in News

Sunsuper confronts lack of board diversity

Sunsuper has improved the gender and geographical diversity of its board with the appointment of the Sydney based Elizabeth Hallett as an employer ... [more]

in News

QSuper’s cohort strategies pose challenge to US and UK schemes

QSuper’s creation of eight different investment cohorts for its members has sparked curiosity and admiration from defined contribution experts in the US and ... [more]

in News

Jana clients gain access to greater range of research

Jana will research a greater range of investment strategies for its clients following its merger with MLC Investment Management. Ian Patrick, whose job ... [more]

in News

CBUS members welcome income projections

CBUS has gained a 97 per cent approval rate from members for statements which confront them with an estimate of their income in ... [more]

in News

Sunsuper: a growing provider of private capital

Sunsuper is expanding its investment team to help it take greater advantage of investment opportunities. The fund, which runs $28 billion in assets, ... [more]

in News

Cost of Stronger Super leads to Media Super cutting CIO role

The cost of Stronger Super compliance and product development has led Media Super to cut the role of chief investment officer. Jon Glass ... [more]

in News

Sunsuper expands investment team to 18

Sunsuper has increased the size of its investment team to 18 with the appointment of Lounarda David to the newly created role of ... [more]

Tackling lawyer led insurance claims

Some of the most influential people in the group insurance space met in Sydney in March to discuss the sustainability of the sector. ... [more]

in News

Managers bullish on Chinese and Indian corporate debt

Australian investors are being urged to increase their exposure to Chinese and Indian credit, owing to imminent political change, low default rates and ... [more]