Latest news with #SuperMembersCouncil
Yahoo
6 days ago
- Business
- Yahoo
Pay rise coming for millions of Aussie workers in weeks: '$948 a week'
Millions of Australian workers will automatically receive a pay rise when minimum and award wages increase from July 1. The Fair Work Commission has announced an increase of 3.5 per cent The decision means that the national minimum wage will be $24.95 an hour, or about $948 a week, based on a 38-hour week. That's up from $24.10 an hour, which is $915.90 per week. About 2.9 million workers will be impacted by the commission's review, or 25 per cent of all Australian workers. RELATED Superannuation change to give Aussie workers pay rise in weeks: '$29,000 boost' Tradie reveals surprising industry where he makes '$300,000 to a million' a year Right to disconnect warning as worker sues former employer for $800,000 The 3.5 per cent increase has fallen short of what the Australian Council of Trade Unions (ACTU) had been calling for at 4.5 per cent, but is higher than what industry groups wanted at around 2.5 per cent. The Albanese government had called for an increase above inflation. The Consumer Price Index is currently 2.4 per cent, however, the Reserve Bank of Australia (RBA) predicts prices will rise by 3.1 per cent over the year to June 2026. ACTU national secretary Sally McManus said it was essential for the country's lowest paid workers to receive a pay rise above inflation. "It's about whether you can keep up with your bills or not, it's whether or not your life gets slightly better, whether it stays the same or whether it goes backwards. It's everything,' she said. "When you're on those wages, you're not saving money. Everything you earn, you spend." The Commission handed down a 3.75 per cent wage increase last year. Economists will be keeping a close eye on the decision and whether it could impact the RBA's interest rate decision. AMP chief economist Shane Oliver said a 3.5 per cent increase, which is midway between union and employer demands, would give workers as "real wage rise" "[But] it's not so high as to add to the risk of a wage price spiral and it's around current wages growth," he said. Australian workers will also be getting an automatic boost to their retirement savings when compulsory superannuation payments increase on July 1. The super guarantee rate will increase from 11.5 to 12 per cent. This is the final legislated increase to the rate. According to the Super Members Council, the typical retirement balance is now projected to reach $500,000 in 30 years. 'This increase to people's super is a powerful step forward for Australians' financial futures. But too many people don't yet know it's happening,' Super Members Council CEO Misha Schubert said. The group has urged Aussies to use the July 1 change as a prompt to log in and check their super, update their details, and consider whether they are on track to meet their retirement goals. 'July's savings boost is a great reminder that your future is worth investing in,' Schubert said. 'A few small steps today can mean a much more secure tomorrow.' with AAPError in retrieving data Sign in to access your portfolio Error in retrieving data
Daily Mail
18-05-2025
- Business
- Daily Mail
Major change to superannuation coming into force within days: What Australians need to know
If you have a job in Australia, you've probably noticed each of your payslips has a section telling you how much superannuation will be paid alongside your wages. But while your wages are deposited in your bank account however frequently you receive a payslip – whether that's weekly, fortnightly or monthly – it's a different story for your super. Under current superannuation laws, employers are only required to pay super into an employee's nominated fund at least four times a year – 28 days after the end of each quarter – although many do pay more regularly. But that's set to change. From July 1 2026, new 'payday super' rules will require employers to pay super into the employee's fund within seven days of wages. This reform was announced in the 2023–24 federal budget, allowing employers, superannuation funds and software providers three years to set up compliant systems. But it hasn't yet been legislated. Now, some industry groups are calling for a further delay of up to two years. So, who are these reforms designed to benefit? And does business really need more time to get ready? Missing or incorrect super Missing or incorrect super payments present a huge problem for Australia's retirement system. The Super Members Council claims one in four Australians are missing out on the correct amount of superannuation contributions. The Australian Taxation Office (ATO) estimates A$5.2 billion of guaranteed superannuation went unpaid in 2021–22. This can be due to payroll errors, misclassification under an award or, in extreme cases, non-payment of superannuation as a form of wage theft. All these things can be harder to spot when super is paid less frequently. Rules only requiring super to be paid quarterly may have been appropriate 30 years ago, in the early days of the superannuation guarantee. Business systems were often not computerised, and wages were often paid in cash. Times have changed Payroll systems are now much more sophisticated. From 2018, the federal government rolled out the single-touch payroll program that requires employers to report wages in real time, including details of superannuation guarantee withheld from an employee's wages. The government is already benefiting from the increased automation of data submitted through this system. Single-touch payroll data helps improve official labour statistics and provides up-to-date income information for employees through the MyGov portal. Sending real-time data to Centrelink addresses one of the major flaws underpinning the Robodebt scandal, which used an averaging system to estimate fortnightly earnings. Benefits for employees In simple terms, the coming changes are basically a change in timing. Payments will be transferred to an employee's super fund in the same way their wages are transferred directly to their bank account. Once bedded down, the changes will provide benefits across the board to employees, employers and the government. Currently, if an employee believes the correct amount of superannuation is not being paid to their fund, they are expected to follow this up directly with the ATO. Unfortunately, many employees presume the withheld amount shown on the payslip has already been paid into their super account. Unless a member is actively monitoring their super balance, they may be unaware that the amount shown on their payslip is not being paid into their fund on a timely basis. Benefits for business Employers should also benefit from these changes, many of whom already do transfer superannuation when wages are paid. Currently, superannuation guarantee payments are run on a separate payment cycle to payroll, coinciding with payment of tax liabilities. If payments are on the same cycle as payroll, it should make budgeting easier, and ensure the separate super payment run is not overlooked. This assumes, of course, that the business is not relying on unpaid superannuation contributions to manage their cash flows elsewhere in the business. If that is the case, payday super changes will help protect the employee if the employer runs into financial difficulties. The change will also allow the tax office to match deductions and payments in real time to detect fraud – and check that super is actually being paid. This can reduce audit costs and – in the long run – reduce reliance on the aged pension as super account balances improve. Why wait any longer? So, with all of these expected benefits, why has the financial services sector this month asked for implementation to be delayed further – by up to two years? The building blocks of the system – electronic payments to transfer funds and the government's single-touch payroll gateway – are already in place. One challenge is legislative. Although announced in May 2023, the draft legislation was only released for consultation in March 2025. The Superannuation Guarantee (Administration) Act 1992 needs extensive amendments to rewrite references to the calculation and payment of the superannuation guarantee charge. The draft legislation also makes some changes to definitions that may impact on how systems must be set up for payday super. Although not intended to change entitlements, they need to be made accurate in the software. Still, payday super has the potential to strengthen Australia's superannuation system, protecting employee contributions and smoothing the payment system for employers. Concerns around its implementation are largely due to the time it has taken for the draft legislation to emerge. Following the election, the federal government has the numbers to pass this legislation as a matter of priority.
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
16-03-2025
- Business
- Yahoo
$92,500 superannuation warning over controversial plan for first-home buyers: ‘Supercharged price hike'
Allowing first-home buyers to withdraw their superannuation for house deposits could see property prices skyrocket by up to 10.3 per cent, new independent research has found. The Coalition has promised to let Aussies access up to $50,000 from their super savings to buy their first home if they win this year's federal election. A new study authored by University of South Australia Professor Chris Leishman, commissioned by the Super Members Council, found the policy could see median capital city prices rise by up to $92,500. This could add $260 a fortnight to the home buyer's mortgages. The modelling found house prices would increase by between 7.4 and 10.3 per cent over a two-year period. The study used two econometric models to estimate the price impacts of the proposal. RELATED Superannuation warning as new $73,000 retirement reality exposed $800,000 Centrelink 'hack' for Bank of Mum and Dad to avoid pension cut Inheritance warning over looming $3.5 trillion wealth transfer: 'Disaster waiting to happen' 'It is an uncontroversial finding - if you add demand to an inelastic market, prices are going to rise, with the unintended consequence of making housing less affordable,' Professor Leishman said. Super Members Council has estimated that median house prices could rise by an average of $123,000 in Sydney, $80,000 in Melbourne, $92,000 in Brisbane and around $84,000 in Perth and Adelaide. Super Members Council CEO Misha Schubert said evidence showed that early withdrawals of super for house deposits would push up house prices further and faster and price more Aussies out of owning their own home. 'Raiding retirement savings for house deposits would just unleash a supercharged price hike in house prices, not create more new home buyers,' she said. 'That would mean home buyers in future would have to pay higher repayments on bigger mortgages for longer, worsening housing affordability and cost-of-living pressures on younger Australians.' It follows the super group's analysis of New Zealand's super for house scheme, which it said served as a 'cautionary tale' for Australia. It found house prices had risen 134 per cent from June 2010 to June 2024 when the policy was introduced. Homeownership rates fell overall, particularly among young people, with rates dropping by about 7 per cent for people in their 30s. Since 2014, the total number of Kiwi first-home buyers taking out a mortgage with a loan-to-value ratio of more than 80 per cent tripled, rising from 25 to 75 per cent. The Coalition has proposed allowing first-home buyers to access 40 per cent or up to $50,000 of their super to purchase a first home. Most people under 40 don't have enough superannuation to pull out the full $50,000. The latest ATO data found males aged 30 to 34 have $56,344 on average, while females have $46,289 on average. Super Members Council found a 30-year-old who withdrew $35,000 from their super today could retire with about $195,000 less in today's dollars.
