What else was debated with the mining tax the other night?
While the decision was announced in the budget a while back, my sources at Printing Industries Association of Australia tell me that the federal government “has now passed the Superannuation Guarantee (Administration) Amendment Bill 2011 through the Lower House. This Bill proposes to increase the compulsory Superannuation Guarantee rate from 9% to 12% as well as the mandatory contribution age for superannuation from 70 years to 75 years.
“In an attempt to disguise the financial impact this will have on employers, particularly small businesses, the government debated the proposed superannuation increases at the same time as the debate on the mineral resources rent tax (mining tax).
“It appears the government chose to ‘bundle’ these Bills in order to create the impression that the mining tax will in some way offset the increases in superannuation. However, this is not the case. In reality, the burden of the 3% superannuation increase (incremental increases of 0.25% every year from 2013) will fall on employers’ shoulders.”
While the opposition will likely vote in the negative, it will likely pass the Senate.
While the increase in the level of superannuation savings is not in itself a bad thing, it adds another impost on business, and adds to the complexity of running a business.
Big business has the resourses to look after itself. The question is, who does a small amd micro business turn to for help in managing not only this increase, but also the hidden impact of the Carbon Tax?
Details of the new arrangements can be found at DEEWA http://www.deewr.gov.au/Department/Documents/Files/6_Fact_Sheet_SG%20_rate_increase.pdf