The government will continue with its proposal to lift the superannuation guarantee (SG) to 12 per cent by 2019-20, despite changes to the resources super profits tax (RSPT) announced today.
"Basically, all the superannuation changes remain the same," a spokesperson for Minister for Financial Services, Superannuation and Corporate Law Chris Bowen said.
The government laid out its plans for the SG increase on 2 May this year, stating it would commence with a 0.25 per cent increase in 2013-14 and 2014-15, followed by 0.5 per cent increments until the SG reaches 12 per cent by 2019-20.
"The announcement was made on 2 May, so there is no changes there," the spokesperson said.
Earlier this week, both the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) called on the federal government to retain its commitment to the 12 per cent SG.
The call followed the government's expected decision to revise the resource super profits tax, which in turn could have meant a roll back of the SG, retaining it at 9 per cent.
"We believe the increase in the SG is of paramount importance and this should remain the central plan of the government's superannuation policy," ASFA chief Pauline Vamos said at the time.
A recent AIST Newspoll found 77 per cent of people supported the SG boost to 12 per cent, while 76 per cent were in favour of the government's proposal to provide a $500 super rebate for workers earning less than $37,000.
The government announced this morning that a restructured resource tax will see the originally proposed 40 per cent headline tax rate cut to 30 per cent for iron ore and coal, while the petroleum resource rent tax will apply to both onshore and offshore oil and gas projects.
The revenue loss of $1.5 billion as a result of the revised RSPT will be funded by changes to the company tax rate. The planned company tax rate cut from 30 per cent to 28 per cent has been scaled back, with only half the cut to be introduced, a statement from the Prime Minister's office said.
