POWERED BY MOMENTUM MEDIA
Thousands lost since SG freeze
Workers have lost thousands of dollars in income as a result of the superannuation guarantee (SG) rate being frozen, as well as no increase in real wage growth, according to a new report from Per Capita.
The report titled “The Super Freeze: What You’ve Lost” had looked at what happened to wages and superannuation since the SG freeze in 2014 under the Coalition government, by then Prime Minister Tony Abbott.
The analysis showed wages rose from $1,000 to $1,066 per week ($52,000 to $55,432 a year), and a worker on the full-time median wage has lost $4,332.99 in superannuation.
Adjusting for inflation, in 2014 the real median wage was $56,524 in today’s dollars, meaning a loss of $900.99 based on nominal wage growth.
Emma Dawson, Per Capita’s executive director and lead author of the report, said by any objective measure workers had suffered a significant loss in net income since the SG freeze.
“Instead of going into the pockets of workers, as the government promised it would, those lost super savings have been pocketed by employers,” Dawson said.
Recommended for you
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment