The Rudd government is likely to increase the superannuation guarantee (SG) next year if it wins the upcoming election, according to Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos.
Speaking at an ASFA event held in Sydney yesterday, Vamos said while there was unlikely to be an increase in the SG this year, there was a real possibility it could be raised by up to 2 per cent in 2011.
"If inflation increases and the economy remains buoyant there is a real possibility, if the government gets back in, we will see an increase in the SG next year," she said.
After discussions with the Cooper review panel and Treasury, Vamos said there was also a possibility of changes to the current contribution caps.
"The contribution caps have had unintended consequences - especially for middle income earners," she said. "There may be a rise in the caps and the contribution cap system will probably be extended past 2012 until 2020."
Vamos warned that if the caps weren't increased, funds would continue to see a decrease in voluntary contributions.
She said despite views to the contrary, the government had a very strong commitment to the Cooper review findings, and that once they are released, there would be a "very quick" response.
"The government is keen from a policy and risk perspective to ensure the industry is transparent and efficient," Vamos said.
She said a second draft of the leaked Cooper MySuper proposal could soon be released publicly.
