Superannuation payments are set to rise for employers phasing up from 9 to 12% over the coming years. Employers are expected to be paying the full 12% by 2020.
Basically, this measure is designed by the Government to increase the future retirement savings and incomes of Australian workers through a gradual increase in the superannuation guarantee.
Most of us realise that the Government can’t afford to fund pensions forever, and we all need to take a more active role in saving for our retirement. And most of us understand that employers are the ones who will be funding the bulk, if not all of the increase.
The Government has released the following Fact Sheet with detailed explanations: http://www.deewr.gov.au/Department/Documents/Files/6_Fact_Sheet_SG%20_rate_increase.pdf
It all seems fairly straight forward to myself, my employees and most of the employers and clients I speak with. Even the DJ’s at 2GB seem to have a pretty good handle on how it’ll work.
Not so for the Labor member for the seat of Canberra – Gai Brodtmann it would appear.
In this interview, she attempts to explain who’s going to pay for the 3% increase in the Superannuation levy. Presumably this is an interview she has prepared for and a law she has quite possibly, voted on.
The political ‘spin’ is perfect (if repetitive) but it appears, she hasn’t a clue about what it means or how it all works.
Unfortunately, as amusing as the following interview is, it’s also serious. Our Politicians are the lawmakers – and one would hope they have some idea of what they’re doing.