The Association of Superannuation Funds of Australia (ASFA) said the last barrier to lifting the superannuation guarantee (SG) has been removed, after the government yesterday won the support of the mining industry for its resources tax.
"This is a welcome development which means there's no reason superannuation measures, announced by the government in May last year, can't now be put into legislation," ASFA chief executive Pauline Vamos said.
"The MRRT (mineral resources rent tax) will ensure the budgetary impacts from moving to a 12 per cent SG and from introducing the tax rebate for low-income earners are affordable both in the medium and long term."
The government yesterday said it had accepted all recommendations of the Policy Transition Group (PTG) headed by Energy and Resources Minister Martin Ferguson and former BHP Billiton chairman, Don Argus, and secured the support of the mining industry for the MRRT.
"The government supports the recommendation that all current and future royalties be credited, and that all levels of government should ensure the taxation of Australia's resources preserves our international competitiveness," Treasurer Wayne Swan and Ferguson said.
"We agree with the PTG that the MRRT is a more efficient way to provide Australians with a return on their mineral wealth and that we shouldn't give a green light to the states to increase their royalties."
Assistant Treasurer Bill Shorten said revenue from the new resource taxation regime announced by Swan would go towards building superannuation savings.
"The revenue from the MRRT will help offset the loss of taxation revenue from increasing incentives to save through superannuation," he said.
"It is clear from the recent profit announcements by BHP Billiton ($11 Billion), Rio Tinto ($14 billion) and other big miners that the time is right for the MRRT, which taxes the enormous profits of those companies - profits made by digging up the resources owned by all Australians - and gives it back to all of us through more regional infrastructure, business tax cuts and, of course, better superannuation."
