The Federal Government’s proposed increase in the Superannuation Guarantee from 9 to 12 percent has ‘almost universal support’ from Australians a poll commissioned by ASFA concludes.
The national poll into support for the Federal Government’s proposed increase in compulsory superannuation guarantee, conducted by Brandmanagement and commissioned by ASFA (Association of Superannuation Funds of Australia) show that almost 90 percent of working Australians believe that the Government has made a good decision in increasing the Superannuation Guarantee from 9 to 12 percent.
While the poll of adult Australians in the workforce indicates strong support across a wide cross section of age and salary demographics, support is even higher than the average for females, low to middle-income earners and younger people. Amongst those aged 25 to 29 there was almost universal support for increasing the Superannuation Guarantee.
“This is proof that the Australian public understands and wants the benefits that an increased SG rate will bring, and that they want to retire comfortably and with dignity,” said ASFA CEO Pauline Vamos.
“Moving to 12 percent can go a long way for many Australian households to achieve a comfortable retirement as defined by the Westpac ASFA Retirement Standard.”
Current SG contributions are around $50 billion a year. By 2020 when the SG will reach 12 percent, the additional inflow of contributions will be around $10 billion a year.
“There is a mistaken belief by some that increasing SG will be a huge cost and is being largely funded by the Resource Super Profits Tax (RSPT). Our research shows that the cost to the Budget of the phased increase is $240 million in 2013-14. This is less than 3 percent of the projected $9 billion revenue from the RSPT,” Ms Vamos said.
“What is important to note is that over the long term the cost to Government will be offset by the savings in pensions and other benefits.”
