{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Superannuation contributions

This policy explains HIA's position on superannuation. It includes HIA's opposition to proposals to increase employer funded compulsory contributions or extend the superannuation contribution guarantee charge to self-employed persons and independent contractors. HIA supports the generation of higher levels of retirement savings via permanent or temporary abandonment of taxation of superannuation contributions.

HIA’s Position statement

  1. Government policies and programs should support and promote home ownership and housing investment as a direct means of funding retirement.
  2. HIA opposes proposals to increase compulsory contributions if they are to be funded by employers.
  3. HIA opposes proposals to extend the superannuation contribution guarantee charge to self-employed persons and independent contractors other than via providing incentives for such persons to make contributions on a voluntary basis.
  4. To reduce compliance costs, increase certainty and help to overcome the problem of unwitting non-compliance, the deeming provisions of the Superannuation Guarantee Act should expressly adopt the ‘results’ test set out in Division 84 (Alienation of Personal Services Income) of the Income Tax Assessment Act 1997 and exempt compulsory employer contributions for independent contractors who satisfy that test.
  5. HIA supports improved certainty and consistency in the taxation of superannuation contributions and withdrawals.
  6. HIA supports government education and promotion programs to ensure maximum take up and the effectiveness of any initiatives that are:
    • available to employers to increase workplace participation levels; and
    • available to persons (including the self-employed) to encourage them to contribute on a voluntary basis to their superannuation fund.
  7. HIA supports proposals for superannuation that seek to extend workplace participation provided such proposals are suitable to the operational requirements of the employer’s business.

Background

  • Superannuation is now the largest financial asset many Australians have after the family home.
  • The superannuation system has accumulated over $2 trillion in assets, making it the second largest part of the financial system.
  • Compulsory superannuation via the Superannuation Guarantee (SG) was introduced in 1992. It provides for a percentage of an eligible employee’s remuneration to be directed into a superannuation fund by means of a compulsory employer contribution.
  • Over the years, the SG rate has been increased from the original 3 per cent to the current 9.5 per cent.
  • Superannuation coverage now extends to approximately 90 per cent of employees and is an established ‘workplace right’.
  • The rate was scheduled to increase to 10 per cent in 2015 and up to 12 per cent by 2017. The increase was to be entirely funded by employers, with no off-set or subsidy. However, in 2014 the Coalition Government locked the rate at 9.5 per cent until 2021.
  • The requirement to pay superannuation has imposed additional red tape costs and monetary costs upon businesses in the residential building industry. It is also an area of confusion, especially for small business.
  • The Superannuation Guarantee (Administration) Act 1992 (the SG Act), is not simple to follow and the obligations imposed on employers under it are complex.
  • The SG Act has also been consistently amended on a fairly ad hoc basis since its introduction.
  • A particular source of confusion about superannuation obligations is the treatment of contractors. Distinguishing between employees and independent contractors for the purposes of superannuation can be a complex and difficult task as the SG Act moves beyond well understood common law principles by deeming that ‘labour only’ businesses are employees for the purpose of superannuation.
  • The resolution or determination of the status of a worker for superannuation purposes may sometimes occur on a timeframe outside the required lodgement and payment periods.
  • Another policy issue relates to whether or not compulsory superannuation should be extended to the self-employed, including independent contractors. To date, compulsory superannuation contributions have not extended past ‘employees’, largely on the basis that many self-employed persons consider the value of their business to be their retirement savings.

Policy endorsed by HIA National Policy Congress: 20 May 2010. Re-endorsed with amendments May 2017 (title change). Amended May 2018.

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!
HIA Advocacy
View all $vuetify.icons.faArrowRight
31 May
Illegal Logging Prohibition Amendment Bill 2024

HIA prepared a submission to the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024.

31 May
Building Bill 2024 - Consumer Protection (NSW)

HIA responded to the Consultation Paper on the Building Bill 2024 – Consumer protections for home building work (Paper) issued by the Building Commission in April 2024.

24 May
Jurisdiction of the Federal Safety Commissioner

Are your interested in tendering for federally funded government building work? Use HIA’s flowchart to help you determine if you are required to comply with the Federal Work Health and Safety accreditation scheme.

22 May
BCITF 2024 Statutory Review

Housing Industry Association (HIA) submission to the 2024 Statutory Review of the Building and Construction Industry Training Fund and Levy Collection Act 1990. Attracting, training, and retaining skilled workers is fundamental to the ability of the residential building industry to deliver the homes Australia needs.

22 May
Water supply development servicing plan NSW

HIA provided a submission to the City of Coffs Harbour Council (CCHC) on the update of the CCHC Development Servicing Plan Water Supply (DSP).

20 May
Statutory review of Civil Law (Sale of Residential Property) Act 2003 (ACT)

HIA took the opportunity to respond to the review of laws protecting off‐the‐plan home buyers from unfair contract cancellations.