Committee defends super threshold
A Key Parliamentary Committee looking into improving the retirement savings of people under 40 has strongly countered the recommendations of the Business Regulation Taskforce on the superannuation guarantee threshold.
The committee has not only recommended that the superannuation threshold remain unchanged or actually lowered, it has also recommended a system under which employers would provide new employees with an opportunity to make voluntary superannuation contributions to top up the superannuation guarantee.
Releasing its report into improving the superannuation savings of people under 40, the House of Representatives, Economics, Finance and Public Administration Committee emphasised that such “top-up” contributions should be voluntary, with employees able to opt out at any time.
It suggested that the voluntary scheme be set at an initial level of 3 per cent, meaning that it would effectively lift the contribution made by employees to 12 per cent.
The chairman of the Committee, NSW member of Parliament Bruce Baird, said he believed such a voluntary opt out saving scheme would considerably boost retirement savings, bringing people closer to the lifestyle they expect in retirement.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
