Bill's Media Releases

NEW ANALYSIS SHOWS BENEFITS OF GILLARD GOVERNMENT’S SUPERANNUATION REFORMS

THE HON WAYNE SWAN MP
Deputy Prime Minister and Treasurer


 


THE HON BILL SHORTEN MP


Minister for Employment and Workplace Relations


Minister for Financial Services and Superannuation


 


*** JOINT MEDIA RELEASE ***


 

 NEW ANALYSIS SHOWS BENEFITS OF GILLARD GOVERNMENT’S SUPERANNUATION REFORMS

 Millions of hard-working Australians will benefit from the Gillard Government’s superannuation reforms, with new analysis showing the gains for workers across each industry.

 The analysis also shows Labor’s policies will further secure the Australian economy for the long term by significantly boosting national savings.

 The increase in retirement savings through raising the Superannuation Guarantee (SG) rate is shown for employees earning average wages in over 70 occupations.

 For example, the increase in super savings for a 30 year old employee who retires at age 67 and earns average full-time wages for their occupation is:

–             around $75,000 for child care employees;

–             around $124,000 for construction and mining labourers;

–             around $124,000 for electricians;

–             around $66,000 for hairdressers;

–             around $82,000 for hospitality workers; and

–             around $79,000 for receptionists.

 Also illustrated is the tax cut provided by our Low Income Superannuation Contribution for employees working part-time and earning average wages in over 70 occupations.

 For example, the tax cut for a person’s compulsory contributions in 2012-13 is:

–             around $338 for checkout operators and office cashiers working three days per week;

–             around $457 for child care employees working four days per week;

–             around $402 for hairdressers working four days per week;

–             around $250 for hospitality workers working two days per week;

–             around $451 for midwifery and nursing professionals working two days per week; and

–             around $362 for receptionists working three days per week.

 Further information released today shows the 20 occupations which benefit most from our Low Income Superannuation Contribution and updated state and territory breakdowns of the number of people who will benefit from our super reforms and the increase in the pool of super savings.

 The Gillard Government is boosting the superannuation savings of hard-working Australians by:

 Gradually increasing the SG rate from 9 to 12 per cent from 1 July 2013 to 1 July 2019. This reform will boost the retirement savings of around 8.4 million employees, and means a 30 year old on average full-time wages who retires at age 67 will retire with around an extra $127,000 in superannuation savings.

 Removing tax paid on superannuation contributions for people earning up to $37,000 from 1 July 2012. This is providing 3.6 million workers, including 2.1 million women, with a tax cut on their superannuation of up to $500 a year.

 Labor’s superannuation reforms will boost our national pool of superannuation savings by more than $500 billion by 2037.

 Australians can find out how much they will benefit from our super reforms by entering some basic details into the online Super Calculator at the www.moresuper.gov.au website.

 In stark contrast to Labor’s plans to increase superannuation, Mr Abbott has broken his promise to Australian employees not to touch their super and instead is proposing to cut Australians’ superannuation savings.

 It is a matter of record that the Coalition has voted against every increase in universal superannuation since it was created by Labor.

 Mr Abbott has described superannuation as a “con-job” and a “confidence trick”, and as recently as last year said:

 “We have always as a Coalition been against compulsory superannuation increases.” (Press conference – 23 March 2012)

 Mr Abbott has also confirmed he will increase tax on super for 3.6 million Australians earning up to $37,000 – including 2.1 million women – by scrapping the Low Income Superannuation Contribution.

 Labor is the party of superannuation – we created it and we’re the only party interested in growing the retirement savings of hard-working Australians. 

 

ATTACHMENT A: BENEFITS OF SUPERANNUATION GUARANTEE (SG) INCREASE BY OCCUPATION

Increase in superannuation savings from the SG increase for a 30 year old employee who earns average full-time wages for that occupation and retires at age 67.




















































































































































































































































































































































































































Occupation



Average full-time wages (per year)



Increase in super savings for a 30 year old who retires at age 67


Accountants, auditors and company secretaries

$73,344



$129,000


Accounting clerks and bookkeepers

$58,880



$104,000


Agricultural, medical and science technicians

$56,012



$99,000


Animal attendants and trainers, and shearers

$41,704



$74,000


Architects, designers, planners and surveyors

$74,524



$131,000


Arts professionals

$88,632



$156,000


Automobile, bus and rail drivers

$69,752



$123,000


Automotive electricians and mechanics

$51,877



$92,000


Bricklayers, and carpenters and joiners

$56,727



$100,000


Business and systems analysts, and programmers

$96,558



$170,000


Call or contact centre information clerks

$53,509



$94,000


Checkout operators and office cashiers

$41,756



$74,000


Child carers

$42,309



$75,000


Cleaners and laundry workers

$42,324



$75,000


Clerical and office support workers

$52,414



$92,000


Construction and mining labourers

$70,158



$124,000


Contract, program and project administrators

$75,920



$134,000


Database and systems administrators, and ICT security specialists

$79,118



$140,000


Delivery drivers

$45,306



$80,000


Education aides

$47,784



$84,000


Electricians

$70,450



$124,000


Electronics and telecommunications trades workers

$67,499



$119,000


Engineering professionals

$101,249



$179,000


Fabrication engineering trades workers

$69,024



$122,000


Farm, forestry and garden workers

$45,849



$81,000


Financial and insurance clerks

$58,483



$103,000


Financial brokers and dealers, and investment advisers

$105,923



$187,000


Floor finishers and painting trades workers

$48,875



$86,000


Food preparation assistants

$43,607



$77,000


Food process workers

$46,887



$83,000


Food trades workers

$48,488



$86,000


Freight handlers and shelf fillers

$46,543



$82,000


General clerks

$53,838



$95,000


Hairdressers

$37,199



$66,000


Health and welfare support workers

$61,789



$109,000


Health diagnostic and promotion professionals

$86,130



$152,000


Health therapy professionals

$81,671



$144,000


Horticultural trades workers

$49,317



$87,000


Hospitality workers

$46,282



$82,000


Human resource and training professionals

$73,402



$130,000


ICT and telecommunications technicians

$72,453



$128,000


ICT network and support professionals

$83,408



$147,000


Information and organisation professionals

$88,038



$155,000


Insurance agents and sales representatives

$67,577



$119,000


Keyboard operators

$50,913



$90,000


Legal professionals

$83,804



$148,000


Logistics clerks

$61,023



$108,000


Machine operators

$48,138



$85,000


Mechanical engineering trades workers

$83,293



$147,000


Media professionals

$88,600



$156,000


Medical practitioners

$136,901



$242,000


Midwifery and nursing professionals

$83,585



$147,000


Miscellaneous clerical and administrative workers

$62,618



$110,000


Miscellaneous education professionals

$90,557



$160,000


Miscellaneous factory process workers

$44,082



$78,000


Miscellaneous labourers

$51,642



$91,000


Miscellaneous sales support workers

$59,203



$104,000


Miscellaneous technicians and trades workers

$96,136



$170,000


Mobile plant operators

$60,392



$107,000


Natural and physical science professionals

$85,718



$151,000


Office and practice managers

$67,395



$119,000


Packers and product assemblers

$47,387



$84,000


Panelbeaters, and vehicle body builders, trimmers and painters

$51,556



$91,000


Personal assistants and secretaries

$58,103



$103,000


Personal carers and assistants

$51,971



$92,000


Personal service and travel workers

$65,398



$115,000


Printing trades workers

$52,697



$93,000


Prison and security officers

$62,191



$110,000


Real estate sales agents

$51,724



$91,000


Receptionists

$44,697



$79,000


Sales assistants and salespersons

$47,977



$85,000


Sales, marketing and public relations professionals

$81,538



$144,000


School teachers

$79,142



$140,000


Social and welfare professionals

$69,658



$123,000


Sports and fitness workers

$69,939



$123,000


Stationary plant operators

$86,359



$152,000


Storepersons

$48,123



$85,000


Tertiary education teachers

$96,646



$171,000


Truck drivers

$56,862



$100,000



  

ATTACHMENT B: BENEFITS OF THE LOW INCOME SUPERANNUATION CONTRIBUTION FOR PART-TIME WORKERS BY OCCUPATION

 Tax cut provided by the Low Income Superannuation Contribution in respect of SG contributions made in 2012-13, for part-time employees earning average wages for that occupation.























































































































































































































































































































































































































































































































































































Occupation



Number of days worked per week



1



2



3



4


Accountants, auditors and company secretaries

$198



$396



$0



$0


Accounting clerks and bookkeepers

$159



$318



$477



$0


Agricultural, medical and science technicians

$151



$302



$454



$0


Animal attendants and trainers, and shearers

$113



$225



$338



$450


Architects, designers, planners and surveyors

$201



$402



$0



$0


Arts professionals

$239



$479



$0



$0


Automobile, bus and rail drivers

$188



$377



$0



$0


Automotive electricians and mechanics

$140



$280



$420



$0


Bricklayers, and carpenters and joiners

$153



$306



$459



$0


Business and systems analysts, and programmers

$261



$0



$0



$0


Call or contact centre information clerks

$144



$289



$433



$0


Checkout operators and office cashiers

$113



$225



$338



$451


Child carers

$114



$228



$343



$457


Cleaners and laundry workers

$114



$229



$343



$457


Clerical and office support workers

$142



$283



$425



$0


Construction and mining labourers

$189



$379



$0



$0


Contract, program and project administrators

$205



$410



$0



$0


Database and systems administrators, and ICT security specialists

$214



$427



$0



$0


Delivery drivers

$122



$245



$367



$489


Education aides

$129



$258



$387



$0


Electricians

$190



$380



$0



$0


Electronics and telecommunications trades workers

$182



$364



$0



$0


Engineering professionals

$273



$0



$0



$0


Fabrication engineering trades workers

$186



$373



$0



$0


Farm, forestry and garden workers

$124



$248



$371



$495


Financial and insurance clerks

$158



$316



$474



$0


Financial brokers and dealers, and investment advisers

$286



$0



$0



$0


Floor finishers and painting trades workers

$132



$264



$396



$0


Food preparation assistants

$118



$235



$353



$471


Food process workers

$127



$253



$380



$0


Food trades workers

$131



$262



$393



$0


Freight handlers and shelf fillers

$126



$251



$377



$0


General clerks

$145



$291



$436



$0


Hairdressers

$100



$201



$301



$402


Health and welfare support workers

$167



$334



$0



$0


Health diagnostic and promotion professionals

$233



$465



$0



$0


Health therapy professionals

$221



$441



$0



$0


Horticultural trades workers

$133



$266



$399



$0


Hospitality workers

$125



$250



$375



$0


Human resource and training professionals

$198



$396



$0



$0


ICT and telecommunications technicians

$196



$391



$0



$0


ICT network and support professionals

$225



$450



$0



$0


Information and organisation professionals

$238



$475



$0



$0


Insurance agents and sales representatives

$182



$365



$0



$0


Keyboard operators

$137



$275



$412



$0


Legal professionals

$226



$453



$0



$0


Logistics clerks

$165



$330



$494



$0


Machine operators

$130



$260



$390



$0


Mechanical engineering trades workers

$225



$450



$0



$0


Media professionals

$239



$478



$0



$0


Medical practitioners

$370



$0



$0



$0


Midwifery and nursing professionals

$226



$451



$0



$0


Miscellaneous clerical and administrative workers

$169



$338



$0



$0


Miscellaneous education professionals

$245



$489



$0



$0


Miscellaneous factory process workers

$119



$238



$357



$476


Miscellaneous labourers

$139



$279



$418



$0


Miscellaneous sales support workers

$160



$320



$480



$0


Miscellaneous technicians and trades workers

$260



$0



$0



$0


Mobile plant operators

$163



$326



$489



$0


Natural and physical science professionals

$231



$463



$0



$0


Office and practice managers

$182



$364



$0



$0


Packers and product assemblers

$128



$256



$384



$0


Panelbeaters, and vehicle body builders, trimmers and painters

$139



$278



$418



$0


Personal assistants and secretaries

$157



$314



$471



$0


Personal carers and assistants

$140



$281



$421



$0


Personal service and travel workers

$177



$353



$0



$0


Printing trades workers

$142



$285



$427



$0


Prison and security officers

$168



$336



$0



$0


Real estate sales agents

$140



$279



$419



$0


Receptionists

$121



$241



$362



$483


Sales assistants and salespersons

$130



$259



$389



$0


Sales, marketing and public relations professionals

$220



$440



$0



$0


School teachers

$214



$427



$0



$0


Social and welfare professionals

$188



$376



$0



$0


Sports and fitness workers

$189



$378



$0



$0


Stationary plant operators

$233



$466



$0



$0


Storepersons

$130



$260



$390



$0


Tertiary education teachers

$261



$0



$0



$0


Truck drivers

$154



$307



$461



$0



 

ATTACHMENT C: OCCUPATIONS WHICH BENEFIT MOST FROM THE LOW INCOME SUPERANNUATION CONTRIBUTION

 The 20 occupations which have the largest number of workers benefitting from the Low Income Superannuation Contribution.













































































































Occupation



Number of people estimated to benefit



Percentage of workforce


1. Sales assistants and salespersons

218,900



45%


2. Checkout operators and office cashiers

146,000



53%


3. Food preparation assistants

93,500



57%


4. Hospitality workers

89,700



35%


5. Cleaners and laundry workers

83,200



35%


6. Receptionists

57,700



32%


7. General clerks

46,700



17%


8. Miscellaneous labourers

42,900



28%


9. Packers and product assemblers

41,700



33%


10. Food trades workers

40,400



35%


11. Child carers

37,000



36%


12. Freight handlers and shelf fillers

33,000



37%


13. Personal carers and assistants

29,500



12%


14. Electricians

25,600



27%


15. Farm, forestry and garden workers

25,300



45%


16. Bricklayers, and carpenters and joiners

25,100



35%


17. Food process workers

24,100



29%


18. Accounting clerks and bookkeepers

22,000



11%


19. Automotive electricians and mechanics

20,300



21%


20. Storepersons

18,600



18%



 

 ATTACHMENT D: UPDATED STATE AND TERRITORY BREAKDOWNS OF BENEFITS OF SUPERANNUATION REFORMS

 Updated state and territory breakdowns of the number of people who will benefit from the SG increase and the Low Income Superannuation Contribution, and the increase in the pool of superannuation savings from the SG increase by 2037.









































































Area



Number of people estimated to benefit



Increase in super savings by 2037 from SG increase



SG increase



Low Income Superannuation Contribution


New South Wales

2,561,000



994,000



$162 billion


Victoria

2,036,000



849,000



$124 billion


Queensland

1,580,000



727,000



$126 billion


Western Australia

838,000



334,000



$73 billion


South Australia

521,000



245,000



$32 billion


Tasmania

178,000



87,000



$8 billion


ACT

145,000



47,000



$11 billion


Northern Territory

84,000



33,000



$8 billion


Unable to allocate

457,000



284,000




Australia

8.4 million



3.6 million



More than $500 billion