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Government pushed on SG rise amid ‘grim forecast’ for wages
Scrapping the super guarantee increase will fail to result in higher wages and is likely to result in reduced retirement savings, says a union body.
Following comments by Scott Morrison in a press conference last week that the government will be “carefully considering” whether to proceed with the increase in the superannuation guarantee (SG) in light of the impact of COVID-19, the Australian Council of Trade Unions (ACTU) has warned that delaying the SG increase will result in less retirement savings.
Read more at SMSF Adviser.
Budget highlights at a glance
Major Spending Initiatives
- $36 billion in new spending
- $17 billion in personal tax cuts
- $8.5 billion in universal Medicare spending
- $5 billion for childcare
- 20% of student debt wiped for 3 million students
- $150 off power bills for all households and small businesses
- Prescription costs capped at $25 each
Economic Forecasts
- Growth: 1.5% in 2024-25, rising to 2.25% in 2025-26
- Inflation: Expected to return to 2-3% band by June 2025
- Wage growth: Outpacing cost of living rises by 0.5% this year
Business Measures
- Non-compete clauses removed for workers earning under $175,000
- $20 million “Buy Australian” advertising campaign
- Incentives for construction and building worker apprentices doubled from $5,000 to $10,000
- Uncertainty around the instant asset write-off scheme
- Foreign investors restricted from buying new homes
Budget Position
- Deficit: $27.6 billion in 2024-25, rising to $42.1 billion in 2025-26
- Government spending as a percentage of GDP rising to 27%
