Super Levy Increase Bill
Wed, 21/12/2011 - 10:24am
The Superannuation Guarantee (Administration) Amendment Bill 2011 will transitionally increase the SG levy from 9% to 12% commencing from 1 July 2013 until 2019/2020. The provisions are dependent upon the passage of the Government's Minerals Resources Rent Tax Package which passed the Lower House on 23 November. On 10 November the Senate referred the MRRT package of bills to the Senate Economics Committee for inquiry and report.
The Australian Government has misled business and the community by stating that the increase in the superannuation levy will be funded by the mining tax (and therefore not by employers). The deception is based on a policy statement that the introduction of the mining tax will facilitate a 1% corporate tax cut and an accelerated small business asset write-off. This in turn will "compensate" employers for the increase in the superannuation levy.
Employer groups have called on the Australian Government to prove how that the 1% corporate tax cut and the asset write off measures could fund the $20 billion superannuation bill. In our view these compensating measures account for only about 10% of the cost of the levy rise. Additionally the Government has not explained how more than 200,000 unincorporated employers will be compensated for the superannuation levy increase.
The Australian Government has misled business and the community by stating that the increase in the superannuation levy will be funded by the mining tax (and therefore not by employers). The deception is based on a policy statement that the introduction of the mining tax will facilitate a 1% corporate tax cut and an accelerated small business asset write-off. This in turn will "compensate" employers for the increase in the superannuation levy.
Employer groups have called on the Australian Government to prove how that the 1% corporate tax cut and the asset write off measures could fund the $20 billion superannuation bill. In our view these compensating measures account for only about 10% of the cost of the levy rise. Additionally the Government has not explained how more than 200,000 unincorporated employers will be compensated for the superannuation levy increase.
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