Territorians to benefit the most from new superannuation increase: Industry Super
NT workers will be the best off in the nation from an increase in the legislated superannuation rate from 9.5 to 10 per cent.
Northern Territory
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NORTHERN Territory workers will be the best off in the nation from an increase in the legislated superannuation rate from 9.5 to 10 per cent.
The average Territorian employee’s super account will accrue an extra $257 annually, the most of any state or territory, according to analysis from Industry Super Australia.
For an average 30-year-old, that will work out to an extra $19,000 at retirement.
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Overall, Territorians will get $18m more added to their super accounts annually.
The super contribution rate, which increased 0.5 per cent on July 1, is expected to reach 12 per cent by 2025.
Industry Super Australia deputy chief executive Matt Linden said the NT received a bigger boost because of its relatively higher proportion of workers on award wages, who earnt more annually than their interstate counterparts.
“We think it’s probably due to a higher proportion of blue collar high income workers in the Territory,” Mr Linden said.
“This kind of lifts the minimum wage up, and the key beneficiaries are younger people.”
Mr Linden said people in their 20s would be the “big beneficiaries” of scheduled increases of the superannuation rate.
“Almost two-thirds of workers getting the increase are under 40,” he said.
“Younger people benefit to a greater degree because of the benefit of compound interest.”
Women more so than men would benefit from the increased rate. “This is probably due to the fact they’re working in jobs with a superannuation guarantee,” Mr Linden said.
“Women in retail and hospitality are big winners.”
Figures from Industry Super Australia showed Territorians would receive an average $257 more a year, well above the national average increase of $233.
United Workers Union NT secretary Erina Early welcomed the boost but urged for more to be done to ensure workers were paid what they were entitled to.
“The increase is actually good, but we would prefer more of an increase instead of a staggered increase out to 2025,” Ms Early said.
“A lot of employers have used this as an excuse not to increase pay. We are seeing that in a lot of enterprise negotiations in hospitality. There’s a lot of young people who don’t check their superannuation and don’t realise their employers aren’t paying (superannuation).”
Tasmanians would see the smallest increase, at just an extra $194 a year.
When 12 per cent super is achieved in 2025, the average 30-year-old couple will see an extra $170,000 added to the retirement savings.
It would also save the federal government $33bn in the age pension.
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