Workers and taxpayers to pay for better super

Workers and taxpayers will shoulder the financial burden of providing better superannuation outcomes for employees because the government has ruled out raising the nine per cent Super Guarantee Charge on employers. The minister for super Nick Sherry said last week that the SGC could move to 12 per cent under by charging workers 1.5 per cent of their weekly wage and giving them a matching 1.5 per cent from the government. The industry and former Prime Minister have called for the SGC to be lifted to 15 per cent. Funds industry looby group IFSA says 12 per cent may be enough for many people. Westpac and ASFA say a retired couple need $939 per week or $49,000 per year to support a comfortable lifestyle which includes occasional holidays. A single person needs $702 per week. Current average pay outs from super are not enough to support a comfortable retirement.

Source: Herald Sun