Chapter 23: RAISING THE SUPERANNUATION GUARANTEE CHARGE (SGC) TO 15% p.a. FOR ALL WORKERS.
MOTION: That the Rudd Government immediately seek to increase the current minimum Superannuation Guarantee Charge of 9% of “Ordinary Time Earnings” to a minimum of 15% of such earnings for everyone employed, whether they be casual, part-time, full-time or contract employees.
If 9% of annual salary is insufficient for politicians, whose base salaries begin far above $100K p.a., then the 9% Superannuation Guarantee Charge (SGC) is decidedly insufficient for Australian workers whose wages and salaries on average are much less than $100K per annum. The following sites offer some insight into the nature of the good old “OZ Fair Go, Mate”.
If the average full time salary is more than $50K per annum, then there are many workers who earn a hell of a lot less than that. Using $50K as the baseline, the SGC contribution of 9% per annum amounts to a measly $4500. A super-raise to 15% would create contributions of $7500. Not a hell of a lot when compared with the largesse unjustifiably ladled out to out politicians purely to preserve their undemocratically corrupted, political status quo.
Currently, absurdity and unfairness prevails in the SGC legislation, whereby a $450 per month thresh-hold exists which allows employers to avoid making SGC payments into superannuation funds for casual and part-time employees.
The anecdotal position is that casual and part-time employees in supermarkets for example, are often denied superannuation contributions by having their services terminated before the earnings of employees reaches the $450 per month thresh-hold where the SGC kicks-in. The employer simply has to rotate employees to avoid the SGC. Considering that there is a powerful economic need for Australians to increase their savings, and to curb their use of plastic credit, what could be better than captive superannuation savings for everyone?
The following Australian Tax Office (ATO) site offers an introduction to Employers’ obligations and is worth a look.
Any argument by employers’ groups that the process of providing the SGC charge on casual employees would be a paperwork pain in the butt would be difficult to sustain in economic terms. Online banking and distribution of payments are dead easy today. Anyone with a super policy could easily supply the relevant information to the employer. Since the advent of online banking, making SGC payments into existing superannuation policy accounts nominated by employees by any title would be a simple exercise. There is no excuse for government not to oblige employers of casual workers, to make contributions to their superannuation.
Considering the need for captive savings, such a policy would have its economic virtues. Encouraging teenagers who may have a casual job, to begin long term captive savings plans would a most useful exercise.