With some businesses electing not to pass on the superannuation guarantee (SG) in addition to current take home pay, analysis from the Association of Superannuation Funds of Australia (ASFA) shows that businesses can afford to pay.
The SG rate would increase from 9.5% to 10% from 1 July and Dr Martin Fahy, ASFA chief executive, said the average Australian worker had not shared in ballooning business profits over the last twenty year.
"The long-overdue increase in the SG will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” Fahy said.
ASFA analysis showed that the Australian economy was currently in the midst of a strong and broad-based recovery from the COVID-19 crisis, with labour market slack down to around pre-crisis levels and expected to continue.
In its recent decision to increase minimum wages in all modern awards, the Fair Work Commission identified Australia’s strong economic recovery from the COVID-19 shock, as well as high business profits, in justifying its decision.
"The Fair Work Commission considered the July increase in the SG and concluded that Australian employers can afford to pay workers the SG rise in full and increase their take-home pay," Fahy said.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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