Fantastic wins on a number of fronts The Gillard Government has succeeded in getting the Superannuation Guarantee increase through Parliament and the Future of Financial Advice (FoFA) reforms are now through the Lower House.This edition of Super enews looks at the industrial implications of the Super Guarantee changes, the PC Inquiry into Default Funds in Modern Awards, the upcoming ACTU Superannuation Breakfast and the attack on Industry Fund governance by the Coalition.
Unions today strongly welcomed the Labor Government’s introduction of legislation to increase superannuation to 12%, hailing it as a reform that would provide real benefits to Australians for decades to come.This is an historic reform that builds on our world-class system of superannuation — one of the Australian labour movement’s greatest achievements, said ACTU President Ged Kearney (pictured).“Millions of Australians will enjoy a higher standard of living in retirement as a result of the increase in superannuation to 12%,” Ms Kearney said.
Nurses, childcare, aged care and community services workers will be among the major winners from the government’s proposal to refund contributions tax paid by workers earning less than $37,000 per year.HESTA Super Fund’s chief executive officer, Anne-Marie Corboy, said around 40% of HESTA members—who work predominantly in health and community services—will benefit from the measures outlined in the government’s proposals for superannuation and tax reform.“That 40% represents around 300,000 workers, within our Fund alone, who will directly benefit,” Ms Corboy said.
Millions of members of retail superannuation funds are having the tax breaks on their superannuation contributions effectively swallowed up by commissions. A new fee study undertaken by Rainmaker Research (commissioned by Industry Super Network) estimates almost $3 billion in commissions were paid by retail super fund members during 2010. The commissions were split between super investment ($1.9 bn) and group and personal insurance paid for from super ($1bn). 6 September 2011
Today’s commitment from the Government to deliver better and cheaper superannuation funds for Australian workers is an important step towards providing a more secure retirement.ACTU Secretary Jeff Lawrence said unions welcomed the release of the final details of the Government’s Stronger Super reforms, including the development of MySuper, which will replace existing default funds, with no entry fees and a ban on other hidden costs for members.
The average 25-year-old worker could lose $143,000 from their planned retirement savings if Parliament does not support the Labor Government’s plan to increase their Superannuation Guarantee to 12%.Unions have launched a new campaign to increase the Superannuation Guarantee to 12% amid uncertainty about whether Parliament will support the Labor Government’s plan to improve security in retirement for all Australian workers.
One in two working Australians have left super behind in old super accounts. Are you one of them?Australians have $billions in unclaimed superannuation accounts. If you think you may have left super behind, visit AUSfund and do a simple search for it.
Being a member of an Industry SuperFund could on average result in a union member being tens of thousands of dollars better off in retirement.*This important fact is recognised by the ACTU and unions generally. That is why the Australian union movement has led the fight for better superannuation and increased superannuation contributions.
Millions of workers in Australia have their pay and conditions determined by enterprise agreements. Yet research suggests that many enterprise agreements do not nominate an industry fund as the default. Many union members may therefore be making default contributions to a retail fund that could cost them up to $70,000 in higher retail fees by the time they retire.
The Hon Bill Shorten MP, Assistant Treasurer and Minister for Financial Services and Superannuation will deliver the key note address at this year’s ACTU Superannuation Trustees Forum.The exciting program will provide attendees with an opportunity to reflect on the past 20 years since the introduction of the Superannuation Guarantee and provide a forum for discussion and debate about what has to happen next.