Catch up on our first Member Town Hall
We recently held our very first Town Hall, giving members a chance to hear from our management team and ask questions about their super.
The Federal Government announced a range of measures in its 2020 Budget aimed at getting the economy back up to speed.
Along with a range of stimulus measures, the Treasurer also announced a number of measures around superannuation, bundled up as the ‘Your Future, Your Super’ reforms. We’ve highlighted the proposed changes we think are most relevant to our members, and explained what they might mean for you.
Though debate about the planned rise of the Superannuation Guarantee rate has been swirling for several months, there was no news about the rise in the Budget.
The Superannuation Guarantee – the amount that an employer must contribute to an employee’s super – is currently set at 9.5 per cent of the employee’s wage. It is legislated to rise to 10 per cent on 1 July 2021, with a further increase of 0.5 per cent each financial year to 12 per cent by 1 July 2025.
The series of increases was originally planned to start on 1 July 2015, but was delayed until 2021 by the Abbott Government in 2014.
With the first increase now less than a year away, a number of Coalition MPs have been calling for the rise to be scrapped in the wake of the COVID-19 pandemic, believing that it could come at the expense of wage growth.
However, the Association of Superannuation Funds of Australia (ASFA) argued in a pre-Budget submission that the effects of COVID-19 have in fact heightened the need for the increase.
More than 500,000 Australians are estimated to have completely emptied their super account through the early release scheme, while millions have also missed out on months of contributions due to unemployment or stand down.
“The COVID-19 related reductions in employment have disproportionately impacted on the young and those on lower incomes,” ASFA stated.
“While the young may have a substantial period of years before retirement to make up for lost contributions they also miss out on the benefits of the compounding of investment returns over many years.”
If you need help with making a decision about your super, you can get simple advice over the phone. It’s included as a part of your membership so there’s no extra cost.