A number of industry bodies have come out in support of the House of Representatives passing legislation that could increase compulsory superannuation contributions from 9 per cent to 12 per cent.
Yesterday, the House of Representatives passed the Minerals Resource Rent Tax (MRRT) Bill and a related piece of legislation, the Superannuation Guarantee Amendment Bill 2011.
In response to the bills’ passing, FPA chief executive Mark Rantall said an increase in SG would improve the quality of life for Australians in retirement.
“The FPA welcomes the government’s passing of the Superannuation Guarantee Bill and the measures incorporated to assist our ageing population with the incentive to remain in the workforce as well as maximising the retirement benefits for low income earners in Australia,” Rantall said.
“The FPA supports initiatives taken by government to assist Australians in planning their financial futures and ensuring they are better prepared for retirement.
“An increase in the superannuation guarantee and encouragement to seek professional financial advice will enhance the quality of life during retirement, ensure income adequacy, reduce longevity risk and decrease reliance on the age pension for Australia’s ageing population. It is timely for the government to address this national issue now.”
The bill will be debated in the Senate today with the majority of the measures expected to take effect from 1 July 2013, with the low income rebate commencing from 1 July 2012.
Association of Superannuation Funds of Australia chief executive Pauline Vamos said the passage of the MRRT bill “is a significant step forward”.
“It is imperative the Senate now follows the lead of the House of Representatives and passes this legislation,” Vamos said.
“This reform is good for the economy, affordable, equitable and necessary.
“An increase in the SG will take the pressure off the age pension and assist more working Australians to a better quality of life in retirement.”
