SG rise delay will hurt retirees: AIST
The Australian Institute of Superannuation Trustees (AIST) came out in opposition of the government's plan to delay the superannuation guarantee (SG) rise to 12 per cent, saying it will hurt retirees and increase super uncertainty.
AIST CEO Tom Garcia lashed out at the government, saying it is a broken election promise not to bring any negative changes to super.
He added the changes come at a time when the financial system inquiry and industry stakeholders are pushing for more certainty around policy changes and objectives for super.
"This decision undermines confidence in superannuation and brings into question this Government's commitment to an effective retirement incomes system," Garcia said.
"Despite assurances otherwise, our superannuation system continues to be subject of constant tinkering."
The comments come as the government struck a deal with the Palmer United Party to repeal the mining tax.
To do this it will freeze the current SG rate at 9.5 per cent until 2021 and then increase at 0.5 per cent a year until it reaches 12 per cent.
Garcia said the AIST is also unhappy the low income superannuation contribution (LISC) scheme will only stay until 2017.
The scheme is worth up to $500 a year in super benefits for those who qualify.
"This is a very disappointing outcome for more than one third of the Australian workforce and they deserve better.
Without the scheme low income earners will pay more tax on their super than their take home pay, whereas other workers get a tax break.
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