Latest news with #MishaSchubert
Yahoo
02-05-2025
- Business
- Yahoo
Fresh blow ahead of $14,500 superannuation boost for 180,000 Aussies: 'Deeply worrying'
Superannuation will be paid on government paid parental leave from July 1 this year. The change passed through parliament last year, but the Coalition has confirmed it plans to change the scheme should they win the election. Around 180,000 Australian families are expected to benefit from the scheme each year. The Super Members Council calculated it would boost a mum-of-two's retirement savings by about $14,500. New Coalition costings confirm plans to make paying super on paid parental leave optional. It has been proposed that families would be able to take extra weeks off work or get a $2,900 lump sum payment instead of being paid super. RELATED Worker forced to push back retirement after superannuation drained: '$50,000 vanished almost overnight' Superannuation change to give Aussie workers pay rise in weeks: '$29,000 boost' Woolworths confirms double hit for shoppers in Everyday Rewards points change: 'Very disappointing' Super Members Council CEO Misha Schubert has urged for the policy to be reversed and said it undermined the purpose of the policy, which was to boost the retirement savings of mums and reduce the gender super gap. 'Telling new mums to cash out their parental leave super payments is a deeply worrying departure from the longstanding bipartisan principles of universality and compulsion in super that are key to a more financially secure retirement for all working Australians,' she said. 'Why is it that women are being asked to choose between financial security now and in retirement?' The ACTU said the move represented a 'large hit' on working women and their families and meant $158 million would no longer flow into the super accounts of working women and their families over the next four years. 'Cutting super on paid parental leave not only hurts women, it makes no sense if the goal is to lift workplace participation,' ACTU President Michele O'Neil said. Women In Super found that due to compound interest, the impact on a woman's finances would be $7,500 at retirement, not just the $2,900 lump sum amount. Time out of the workforce is a key reason why woman approach retirement with around a third less super than men. Super Members Council analysis found the typical woman was retiring with about $50,000 less than their male counterpart. From July 1, parents who access government paid parental leave will receive superannuation on their payments. The government's legislation passed parliament last year, so the change will come into effect regardless of who wins the election. Parents will receive 12 per cent of their payment as a contribution to their super fund. That's because the super guarantee rate is also increasing from 11.5 to 12 per cent on July 1 for all workers. The amount of parental leave pay available will also increase to 24 weeks, up from 22 weeks. The amount of leave will increase by two weeks until it reaches 26 weeks from July 2026. The amount is shared between parents. From July 1, three weeks of leave will be reserved for the parent who is not using the majority of the leave. Parental leave pay is paid at the national minimum wage and usually. changes on July 1 each year. It is currently $915.80 per five day week.
Yahoo
16-04-2025
- Business
- Yahoo
$6,000 super cash boost for Aussie workers as retirement 'drain' halted
Australian workers could be $6,000 better off at retirement when major changes to superannuation kick in. From July 1, 2026, employers will be required to pay superannuation on payday rather than quarterly. The government revealed its long-awaited draft legislation for the superannuation change last month. Advocates are now calling for the laws to be passed urgently in the first 100 days of the new parliament, with the reform first flagged in May 2023. Super Members Council analysis found Aussies were missing out on $100 million a week in unpaid super, or $5 billion a year in lost retirement savings. They said passing the 'landmark' legislation would help plug this 'unpaid super drain'. RELATED Aussie mum reveals $160,000 superannuation 'shock' impacting millions at retirement ATO warning for every Aussie who plays lottery after $70 million Oz Lotto jackpot Rare 50 cent coin worth 80 times more: 'Keep your eyes out' 'By the time these laws start on July 1, 2026 Australian workers will have waited three years for these reforms. Millions of Australians pay the price of unpaid super every single day. They cannot afford any delay,' Super Members Council CEO Misha Schubert said. 'Payday super will dramatically reduce the level of unpaid super, improve compliance with the law and make the super system fairer for workers and businesses alike.' Schubert said the ATO, employers, payroll, digital service providers and super funds would need to make a 'concerted effort' to prepare for the the draft legislation, employers would be required to process group contributions into the employee's super fund within seven calendar days of payday. Existing laws require employers to make super contributions quarterly, regardless of how often a worker is paid. The Council of Small Business Organisations Australia (COSBOA) has supported payday super in principle but has called for a 'realistic timeline' to implement the new laws. The group argued that current banking and processing systems were not capable of reliably meeting the deadline. It recommended a phased implementation with monthly payments from July 1, 2026, moving to payday super by July 1, 2030. 'Super payments move through multiple banking and clearing house stages before reaching super funds,' COSBOA chair Matthew Addison said. 'At present, payments can take several business days to clear, and many transactions require additional time to reconcile. 'A phased transition will ensure businesses can comply effectively without unintended consequences.' Assistant Treasurer Stephen Jones said the change meant a 25-year-old media income earner currently receiving super quarterly and wages fortnightly could be around $6,000 better off in retirement. 'Payday super will make it easier for employers to manage their payroll by paying super at the same time as salary and wages,' Jones said. 'The new law will also streamline the way super is paid by employers to make it easier to meet their obligations.' Separate research by the Super Members Council found the average Aussie would be $7,700 better off at retirement because more frequent super contributions would accrue and compound sooner. While most employers are doing the right thing, the Australian Taxation Office (ATO) estimates $5.2 billion worth of super went unpaid in in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
Retirees face $9,000 tax hit due to overlooked superannuation move: ‘Big missing piece'
Hundreds of thousands of Aussie retirees could be paying more tax than they should be because they haven't made one superannuation move. When you reach retirement age, you can transfer your superannuation from the 'accumulation phase' to the 'retirement phase'. New research from the Super Members Council found around 700,000 Aussies aged over 65 who were not working full-time still had super in an accumulation account. The accumulation phase is when you are building up your super and comes with a 15 per cent tax on your earnings. That's compared to the retirement or pension phase, where retirees can draw an income from their super fund or withdraw their funds as a lump sum. When you transfer super into a retirement phase account, the Australian Taxation Office (ATO) notes that investment earnings are not taxed. RELATED Surprising superannuation amount needed for Aussies to retire revealed: 'Closer than they think' Rare $2 coloured coins worth up to $500: 'Go the distance' Major superannuation change for Aussies as $4.1 trillion industry comes under scrutiny By sticking with an accumulation account, the research found retirees could be paying an extra $650 in taxes each year. For someone with an average retirement balance of $200,000 in an accumulation account, this could add up to an extra $9,000 in super taxes over their retirement. While some people may be strategically holding back on moving their funds, the super advocacy group found many people weren't acting because they didn't know what to do or they were simply disengaged with their Members CEO Misha Schubert said financial advice reforms would be crucial to helping retirees access quality financial advice at an affordable cost, with many retirees not receiving basic advice to switch their super to the retirement phase. 'Not knowing enough about super can lead to poor decisions, like leaving accounts inactive or withdrawing funds without proper planning,' Schubert said. "Making simple information and advice available to more Australians is a big missing piece of the retirement puzzle. The coming financial advice reforms will help make advice more affordable." In December, the federal government announced reforms to help ensure Aussies can access quality and affordable financial advice through their super fund. The laws will be changed to create a new category of financial adviser to give safe and simple advice to more Australians, such as choosing an insurance policy or basic questions about retirement. Other changes include allowing super funds to provide helpful 'nudges' to consumers at stages of their life when they may need more advice, such as retirement. ASFA research found one in two Aussies had never accessed advice on preparing for retirement. The government has also announced plans to introduce mandatory service standards for super funds, as super funds come under scrutiny for the slow payment death and disability payments.
