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Young and low-income workers win in nest egg boost

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Industry Super Australia Chief Executive Bernie Dean

Young and low-income workers win in nest egg boost

Young and low-income workers are the big winners in super boost

More than 6.7 million Australians will benefit from a boost to their nest egg from July as the super rate increases to 10%, with young workers and low to middle-income earners the big winners.

From July 1 an extra $233 a year will flow into the super accounts of the average worker.

This super boost may be small, but it will make a big difference at retirement – with a 30-year-old on the median wage expected to have an extra $19,000 at retirement, a couple will have an extra $38,000.

In total Australians will get an extra $1.5 billion paid in super in the next 12 months.

Half of the extra super payments – about $784 million will go to those under 40 – and more people in their 20s will get a super boost than any other age bracket (see tables below). The extra contributions will help young workers recoup the savings they lost after they were encouraged to raid their super to support themselves through the Coronavirus downturn.

Industry Super Australia analysis of tax file data shows that more women than men will receive the July 1 super boost – 3.41 million women compared with 3.36 million men.

Around 63 per cent of those who will benefit from the SG increase are on wages less than $70,000 – many of these 4.3 million workers are in line for a five-figure boost to their retirement savings – which will improve their quality of life at retirement dramatically.

The super rate is legislated to rise from 9.5% to 12% by 2025 by annual 0.5% increases. At the Budget this year the government re-committed to its election pledge to stick to the legislated schedule. This commitment to 12% super will deliver an extra $85,000 to the typical workers’ retirement savings.

The increase to 12% will also:

· Add $170,000 to the retirement nest egg of the average 30-year-old couple;
· Save $33 billion in Age Pension costs over coming decades;
· Inoculate retirees from future adverse changes to the Age Pension;
· Add $12 billion to Australia’s GDP, create 10,000 jobs and increase real wages, according to research from independent consultants ACIL Allen.
The Superannuation Guarantee is a critical response to the ageing population and improves retirement incomes of working people in a fiscally sustainable manner. Although still maturing, annual superannuation retirement benefit payments are already double age pension expenditures.

Comments attributable to Industry Super Australia Chief Executive Bernie Dean:

“Even though the increases are only small now, they’ll add up to make huge positive difference for millions of Australians when they retire.”

“These increases will give women more financial independence and that means a better shot at a dignified life in retirement, not one marked by poverty.”

“Young people will be the big winners from these increases and help those that raided their super last year, during the downturn, make up some of the lost ground.”

“This is the first of a number of increases the government has promised and locked in law for the coming few years.”

Young and low-income workers win in nest egg boost Young and low-income workers win in nest egg boost Young and low-income workers win in nest egg boost

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Business News

SUPPORT PACKAGE A GAME CHANGER FOR ECONOMIC RECOVERY

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SUPPORT PACKAGE A GAME CHANGER FOR ECONOMIC RECOVERY

SUPPORT PACKAGE A GAME CHANGER FOR ECONOMIC RECOVERY

A $500 million support package to revive the events and tourism industry across NSW will be a game changer that will turbo charge a post COVID economic recovery, according to the state’s peak business organisation, Business NSW.

Premier Dominic Perrottet has announced the package, which includes each adult being provided a $50 voucher to spend on accommodation anywhere in the State.

Business NSW has been telling Government since the start of the pandemic that different industries were being impacted in different ways, but the tourism, hospitality and events sector has been the hardest hit,” said Business NSW Regional Manager Jane Laverty

“What is particularly pleasing is this is not a Sydney centric package but recognises that all of NSW has a part to play in the economic recovery through regional events and tourism, with support for satellite CBD’s a cornerstone of this funding,” Jane Laverty said.

“Business will be delighted with the Event Saver Fund which allows for immediate financial support for organisers of events that are disrupted or cancelled due to a Public Health Order this summer. This will allow confidence in investment and employment without a fear of being left footing a huge bill.

“The exciting part about this support package is that it will actually encourage more business investment and drive a collaborative partnership between business and Government in securing events and once again making NSW the number one destination in the Asia Pacific region for both business and travel.

“What is crucial is the targeted approach the Government takes from here in deciding where the money is spent – this needs to be on a needs-based approach to ensure maximum return on investment.

“A united approach using insight from stakeholders on the ground will be crucial to ensuring this package delivers for all of NSW.

“Business NSW looks forward to working with the State Government in coming weeks on measures and support that will drive regional recovery,” Mrs Laverty said.

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Business News

NEW HARDSHIP PANEL TO PROVIDE MORE BUSINESSES WITH COVID-19 FINANCIAL SUPPORT

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Minister for Finance and Small Business Damien Tudehope

NEW HARDSHIP PANEL TO PROVIDE MORE BUSINESSES WITH COVID-19 FINANCIAL SUPPORT

A new Hardship Review Panel has been established to consider financial support for businesses experiencing financial hardship that do not qualify for COVID-19 business support measures.

The panel will assess on a case-by-case basis businesses which did not meet the eligibility requirements for the 2021 COVID-19 Business Grant, Micro-business Grant and JobSaver payments.

Minister for Finance and Small Business Damien Tudehope said the Review Panel would help those businesses experiencing genuine financial hardship that were previously ineligible for support payments and grants.
“COVID-19 has affected so many businesses in NSW and even though we have a number of support measures in place, there are still some businesses under severe financial strain that aren’t eligible for assistance for a number of reasons. We want to plug that gap as much as we can,” Mr Tudehope said.

The Review Panel will include representatives from Revenue NSW, NSW Treasury and Service NSW and will make recommendations on businesses’ eligibility for relevant support payments and grants.
It will consider a broad range of factors in determining whether a business has experienced financial hardship, with the Chief Commissioner of Revenue NSW to be ultimately responsible and make the final determination for applications.

“My message to small businesses is this – no matter what corner of the state you’re in, we will be there with you all the way as we navigate this global health pandemic,” Mr Tudehope said.

Factors that the hardship panel will consider include, for example, whether the business is an employer, in a highly impacted industry, in an LGA of concern or has unavoidable costs for which no other support is available.

Businesses will be back paid to the fortnight where they can demonstrate the required decline in turnover with the Panel. Hardship applications for JobSaver are now open with hardship COVID business grants and Micro-business grants to open later this month. See more here: https://www.service.nsw.gov.au/campaign/covid-19-help-businesses/covid-19-business-support-hardship-review.

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ROADMAP GIVES CERTAINTY TO BUSINESS

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REOPENING NSW page 1

ROADMAP GIVES CERTAINTY TO BUSINESS

The state’s peak business organisation, Business NSW says confirmation of the three phases of reopening for NSW is a positive step that will provide much needed certainty to business.
The Government has announced rules which will determine what can and can’t happen as the population reaches 70 and 80% double vaccination rates, as well as when liberties apply to all residents, irrespective of vaccination status.
“It’s been an uncertain time for many businesses with lots of confusion about which businesses will be able to open and under what rules,” said Business NSW Regional Manager Jane Laverty.
“The release of the Public Health Orders in coming days will reconfirm that the onus will be on individuals to do the right thing and abide by the rules,” Mrs Laverty said.
“Business owners can’t be expected to also act as security guards, so long as they have a COVIDSafe plan and appropriate registration in place at their entry, they can get on with the business of being in business.
“The Premier has confirmed that 11 October is the day we will likely reopen at 70% double vaccination rate, which we are calling #backtobusiness day, because it will be a real celebration of being able to visit our favourite businesses again and to celebrate what we’ve missed over the past few months.
“A number of greater freedoms will come into place at the 80% double vaccination rate, which on current trends could be as soon as 25 October.
“Businesses will be able to operate under a one person per four square metre rule, with certain caps in place on numbers, depending on the type of industry and whether customers are gathering inside our outdoors.
“It won’t be until 1 December that vaccination status is not a factor – meaning businesses will be able to operate under a one person per 2 square metre rule, as opposed to one person per 4 square metres up until then.
“This is an important step for the business recovery in NSW, as the state looks to bounce back as quickly as possible from the ravages of the pandemic,” Mrs Laverty said.

To see the REOPENING NSW click here to open the PDF

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