The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

23 June 2013

New analysis shows benefits of Gillard Government's superannuation reforms

Joint media release with
the Hon Bill Shorten MP
Minister for Employment and Workplace Relations
Minister for Financial Services and Superannuation

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 MoreSuper 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