The Financial Services Council has applauded the Government for confirming its commitment to increase the Superannuation Guarantee Charge (SGC) to 12 per cent as part of its repeal of the Mineral Resources Rent Tax.
Commenting on the announcement, John Brogden, chief executive officer of the Financial Services Council, said that the repeal of the Mineral Resources Rent Tax would work in tandem with an increase to the Superannuation Guarantee Charge.
"The Government has a clear mandate to repeal the MRRT whilst retaining the key policy of increasing super contributions to 12 per cent by 2021," he said.
"FSC research demonstrates that there is a retirement savings gap of over $1 trillion (so) increasing superannuation contribution rates are critical in closing this gap and ensuring more Australians have adequate retirement savings.
"The repeal of the MRRT contributes $13 billion of savings to the Budget over the forward estimates and is an important step in establishing structural balance in the Budget," Brogden continued.
"The repeal of the MRRT works in tandem with an increase in the SGC, which will reduce the Budget impact of an ageing population over the long-term.
"(This) announcement removes any doubt that the Government is committed to promoting certainty and stability in superannuation policy and will increase the SGC to 12 per cent."
Originally published by SMSF Essentials.
