Minister Bill Shorten says opposition is divided about increasing super, opposition denies it

Shadow Treasurer Joe Hockey has rejected as desperate and dishonest, assertions made by Bill Shorten that the Coalition was divided about Labor plans to increase compulsory super.
“The Coalition does not support Labor’s push to increase compulsory super from 9 to 12 percent,” he said in a joint statement.
“We support policies to increase retirement savings, but there is a better way than Labor’s lazy and unfunded proposal to increase forced savings by another 3 percent,” they said.  

Mr Hockey said concerns were identified by former Treasury Secretary Ken Henry that increasing compulsory super further would hurt low and middle income earners in particular.
“It was Ken Henry as Treasury Secretary who told the government that 9 percent was the right level for compulsory super, which can always be complemented through further voluntary savings.”
He asked for Bill Shorten to explain why he thinks Ken Henry is wrong.

For more see

Recent research by Mercer shows 61 per cent of respondents to its survey support plans to increase the superannuation contribution to 12 per cent.

Heather Dawson, leader of the Mercer Super Trust, says on average only one in four Australians are confident their retirement savings will see them through their lifespan. Only one in three are confident the savings will last beyond the age of 70, and 55 per cent believe they will be less comfortable in retirement than during their years of employment.

But while they support an increase in the levy to 12 per cent, where do they expect the extra 3 per cent to come from? Are they happy to pay it out of their own salary, or – if the employers pay it – are they content to take lower wages? This is yet to really sink in, says Mercer.

“I’m not sure this link has been made by Australians so far. People support the increase, but ultimately, when that impacts take-home pay, will the sentiment change? Perhaps,” says Ms Dawson

From Financial Times, for more see

What are your thoughts?           

Should compulsory super be increased?

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Super Law & Compliance. Bookmark the permalink.

Write your thoughts...

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.