Offshore wind ‘more expensive' than hoped
Mr Lloyd told Sky News host Danica De Giorgio that companies have largely 'lost their money' after trying it.
Norwegian oil and gas giant Equinor has abandoned its third offshore wind project in Australia.
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SBS Australia
2 hours ago
- SBS Australia
'More can be done': The knowledge gap Australians have with their retirement nest egg
The final increase to the superannuation guarantee has taken effect, meaning employers are now required to pay a minimum contribution of 12 per cent into their employees' super funds. But around a third of people are unaware where their retirement funds are invested — a similar proportion don't know their super balance, and one in 10 have never checked. These were the findings of a survey of 3,146 Australians conducted by the Commonwealth Bank, which suggested the knowledge gap about how super is invested was higher among gen Z and women, at 43 per cent. Jessica Irvine, the bank's personal finance expert, said people have more confidence in managing their day-to-day finances, but need more assistance to understand retirement options. Echoing her views, Wayne Swan, the former federal treasurer who oversaw the legislation guaranteeing the increase from nine to 12 per cent, told SBS News that more needed to be done to engage Australians with their retirement planning. Swan, now chair of Cbus, an industry super fund, said: "I think that all superannuation funds acknowledge and do their best to achieve [that], and there's always more that can be done." What is happening with superannuation? Thirty-four years ago, former prime minister Paul Keating shared his vision of an Australian future that included a 12 per cent target for compulsory super contributions. Now, he said, that system "finally matures". The superannuation guarantee has risen since 2012 to reach 12 per cent. In a statement to mark the 1 July increase to 12 per cent, Keating said it "will guarantee personal super accumulations in excess of $3 million at retirement" for someone entering the workforce today. "Superannuation, like Medicare, is now an Australian community standard, binding the whole population as a national economic family, with each person having a place," he said. How did we get here? Superannuation in Australia stretches back to the early 20th century, but there were no attempts to institutionalise universal compulsory contributions before the mid-1980s. In 1985, the Australian Council of Trade Unions, with the support of the then-Hawke government, presented a National Wage Case to the Conciliation and Arbitration Commission about a 3 per cent compulsory contribution for all Australian workers. The tribunal sided with the union in 1986 but ruled it as optional — subject to agreement between employers and employees. Five years later, in Keating's final federal budget as treasurer, the 3 per cent superannuation guarantee levy was made compulsory. It came into effect the following year, when Keating was prime minister, with the introduction of a superannuation guarantee charge to penalise employers who don't meet their contribution obligations. The mandatory rate then gradually increased to 9 per cent by 2002. It was supposed to reach 12 per cent by 2000, but, under the Howard government, there were no further increases until 1 July 2013. In 2010, two years after the Global Financial Crisis and in response to the findings of the Henry Tax Review, then-treasurer Swan unveiled a plan to incrementally lift the superannuation guarantee levy to 12 per cent. He said it would increase by 0.5 per cent each year between 2013 and 2019. In 2010, then-treasurer Wayne Swan (pictured right) announced a plan to gradually increase the superannuation guarantee levy from 9 per cent to 12 per cent. Source: AAP / Alan Porritt But two months after it rose to 9.25 per cent in 2013, Tony Abbott stormed to a landslide election victory — and followed through on an election promise to delay increases to the guarantee due to cost pressures on small businesses. The government failed to legislate the delay the following year, and the rate was lifted to 9.5 per cent — a level it remained at for seven years. It wasn't until Australia was in the midst of the COVID-19 pandemic that the incremental increases began. Starting in 2021, it rose by 0.5 per cent each year. LISTEN TO SBS News 30/06/2025 08:22 English The 12 per cent milestone Australia's superannuation system now manages over $4 trillion in assets, ranking as the fourth-largest pension market in the world. The 12 per cent milestone is expected to propel Australia to second place within a decade — just behind the United States — despite its relatively small population. Swan said the superannuation guarantee levy not only delivers a secure retirement for all Australians, but "fundamentally alters the distribution of wealth in our community". "It gives access to growth assets to everyone in the community. From a building worker through to a professional in the office tower, everyone in Australia gets to own a piece of the wealth of this great country in a way that's never before been possible," he said. Swan said he's "absolutely proud to have been part of this story". "I always think of those pioneers, particularly the unionists, who fought to establish this scheme 40 years ago. What it really shows is that ordinary working people can effect change in a society like ours," he said. "What visionaries they were, and what they have done to make our country not only a bigger and more successful economy, but a fairer one as well." What is a 'comfortable retirement'? Swan said while the six-year delay in achieving a 12 per cent increase came at a cost to Australian superannuation balances, the benefits are greater from having finally reached that milestone. "For someone who's, say, 30 years old now, it's going to mean an extra $130,000 in their retirement," he said. That follows recent modelling by the Association of Superannuation Funds of Australia (ASFA). The super peak body's retirement standard for June 2025 projects a 30-year-old today on the median wage of $75,000 and a $30,000 super balance would witness that figure rise to $610,000 by the retirement age of 67. This amount exceeds ASFA's estimate of the $595,000 needed to afford a comfortable retirement for singles and $690,000 for couples. ASFA defines a 'comfortable' retirement as someone who owns their home outright, is in good health, can afford top-level private health insurance, has a good car, and engages in a range of leisure and recreational activities, including taking one domestic trip a year and one international trip every seven years. Business concerns There are concerns that a string of 1 July changes , including the increase to the superannuation guarantee levy, could hit businesses and place further pressure on cash flow. Luke Achterstraat, CEO, Council of Small Business Organisations Australia, said: "The increase of the superannuation guarantee comes at a time when award rates have also increased 3.5 per cent, national productivity is in decline, and payroll tax and workers' compensation insurance will also increase." There are concerns that an increase to the superannuation guarantee levy and other changes that took effect on 1 July could negatively impact small businesses and further pressure their cash flow. Source: AAP "This puts small businesses between a rock and a hard place, needing to either absorb or pass on these costs to consumers," Achterstraat said. Beyond 12 per cent: Where to from here? The 0.5 per cent increase to 12 per cent is the last one legislated by the Australian government. However, with life expectancy improving, would we need more in our nest egg, and is there a case for raising the superannuation guarantee even further? "I think there's going to be a debate about whether we need to go above 12 per cent," Swan said. "I think 12 per cent can certainly guarantee quite a dignified retirement for all Australians, but that will be a discussion that will be had in the years ahead."
The Advertiser
3 hours ago
- The Advertiser
Beyond carbon: big four banks urged to capture more gas
Australia's big four banks are being urged to take greater action against climate change after a study found none were specifically identifying emissions of a major greenhouse gas. The banks' failure to single out methane emissions could undermine their environmental efforts, the study warned, in addition to their failure to phase out support for methane-intensive coal-mining projects. The Institute for Energy Economics and Financial Analysis issued the warning and six recommendations on Thursday after analysing climate reports from the Commonwealth Bank, ANZ, Westpac and NAB. The report comes after Australian research group The Superpower Institute launched an open platform to report methane emissions and after the big big banks were found to have cut lending to fossil fuel companies by more than 20 per cent in two years. The institute's report analysed annual climate reports and climate transition plans from the four banks and found only ANZ covered methane emissions in its environmental reporting, and none recorded methane emissions separately. The lack of methane reporting went against Partnership for Carbon Accounting Financials guidelines, report author and lead coal analyst Anne Knight said, and could diminish the banks' environmental targets. "Australia's major banks have taken significant strides in addressing their climate-related financial risks and setting decarbonisation targets," she said. "However, the credibility and effectiveness of these efforts are undermined by various critical shortcomings, most notably the inconsistent, often inadequate treatment of methane emissions." While all four banks had set targets to phase out financing for thermal coal mining projects by 2030, they did not set similar targets for metallurgical coal mining that used more methane on average. NAB and Westpac had banned support for new metallurgical mining projects this year, but Ms Knight said they had an opportunity to make a bigger climate impact by addressing methane use. "Reducing methane emissions now could have more immediate results at slowing down global warming," she said. "Banks could be doing more to help achieve this." The institute issued six recommendations to banks in the report including explicitly reporting methane emissions, requiring independent verification of methane emissions from clients, and phasing out finance offered to both thermal and metallurgical coal projects. The report follows research from The Superpower Institute that warned Australia's methane emissions from fossil fuel production could be twice as high as current estimates. It also comes after a Macquarie analysis of the major banks' environmental, social and governance plans in December found they had cut lending to fossil fuel businesses by more than 20 per cent in two years. Australia's big four banks are being urged to take greater action against climate change after a study found none were specifically identifying emissions of a major greenhouse gas. The banks' failure to single out methane emissions could undermine their environmental efforts, the study warned, in addition to their failure to phase out support for methane-intensive coal-mining projects. The Institute for Energy Economics and Financial Analysis issued the warning and six recommendations on Thursday after analysing climate reports from the Commonwealth Bank, ANZ, Westpac and NAB. The report comes after Australian research group The Superpower Institute launched an open platform to report methane emissions and after the big big banks were found to have cut lending to fossil fuel companies by more than 20 per cent in two years. The institute's report analysed annual climate reports and climate transition plans from the four banks and found only ANZ covered methane emissions in its environmental reporting, and none recorded methane emissions separately. The lack of methane reporting went against Partnership for Carbon Accounting Financials guidelines, report author and lead coal analyst Anne Knight said, and could diminish the banks' environmental targets. "Australia's major banks have taken significant strides in addressing their climate-related financial risks and setting decarbonisation targets," she said. "However, the credibility and effectiveness of these efforts are undermined by various critical shortcomings, most notably the inconsistent, often inadequate treatment of methane emissions." While all four banks had set targets to phase out financing for thermal coal mining projects by 2030, they did not set similar targets for metallurgical coal mining that used more methane on average. NAB and Westpac had banned support for new metallurgical mining projects this year, but Ms Knight said they had an opportunity to make a bigger climate impact by addressing methane use. "Reducing methane emissions now could have more immediate results at slowing down global warming," she said. "Banks could be doing more to help achieve this." The institute issued six recommendations to banks in the report including explicitly reporting methane emissions, requiring independent verification of methane emissions from clients, and phasing out finance offered to both thermal and metallurgical coal projects. The report follows research from The Superpower Institute that warned Australia's methane emissions from fossil fuel production could be twice as high as current estimates. It also comes after a Macquarie analysis of the major banks' environmental, social and governance plans in December found they had cut lending to fossil fuel businesses by more than 20 per cent in two years. Australia's big four banks are being urged to take greater action against climate change after a study found none were specifically identifying emissions of a major greenhouse gas. The banks' failure to single out methane emissions could undermine their environmental efforts, the study warned, in addition to their failure to phase out support for methane-intensive coal-mining projects. The Institute for Energy Economics and Financial Analysis issued the warning and six recommendations on Thursday after analysing climate reports from the Commonwealth Bank, ANZ, Westpac and NAB. The report comes after Australian research group The Superpower Institute launched an open platform to report methane emissions and after the big big banks were found to have cut lending to fossil fuel companies by more than 20 per cent in two years. The institute's report analysed annual climate reports and climate transition plans from the four banks and found only ANZ covered methane emissions in its environmental reporting, and none recorded methane emissions separately. The lack of methane reporting went against Partnership for Carbon Accounting Financials guidelines, report author and lead coal analyst Anne Knight said, and could diminish the banks' environmental targets. "Australia's major banks have taken significant strides in addressing their climate-related financial risks and setting decarbonisation targets," she said. "However, the credibility and effectiveness of these efforts are undermined by various critical shortcomings, most notably the inconsistent, often inadequate treatment of methane emissions." While all four banks had set targets to phase out financing for thermal coal mining projects by 2030, they did not set similar targets for metallurgical coal mining that used more methane on average. NAB and Westpac had banned support for new metallurgical mining projects this year, but Ms Knight said they had an opportunity to make a bigger climate impact by addressing methane use. "Reducing methane emissions now could have more immediate results at slowing down global warming," she said. "Banks could be doing more to help achieve this." The institute issued six recommendations to banks in the report including explicitly reporting methane emissions, requiring independent verification of methane emissions from clients, and phasing out finance offered to both thermal and metallurgical coal projects. The report follows research from The Superpower Institute that warned Australia's methane emissions from fossil fuel production could be twice as high as current estimates. It also comes after a Macquarie analysis of the major banks' environmental, social and governance plans in December found they had cut lending to fossil fuel businesses by more than 20 per cent in two years. Australia's big four banks are being urged to take greater action against climate change after a study found none were specifically identifying emissions of a major greenhouse gas. The banks' failure to single out methane emissions could undermine their environmental efforts, the study warned, in addition to their failure to phase out support for methane-intensive coal-mining projects. The Institute for Energy Economics and Financial Analysis issued the warning and six recommendations on Thursday after analysing climate reports from the Commonwealth Bank, ANZ, Westpac and NAB. The report comes after Australian research group The Superpower Institute launched an open platform to report methane emissions and after the big big banks were found to have cut lending to fossil fuel companies by more than 20 per cent in two years. The institute's report analysed annual climate reports and climate transition plans from the four banks and found only ANZ covered methane emissions in its environmental reporting, and none recorded methane emissions separately. The lack of methane reporting went against Partnership for Carbon Accounting Financials guidelines, report author and lead coal analyst Anne Knight said, and could diminish the banks' environmental targets. "Australia's major banks have taken significant strides in addressing their climate-related financial risks and setting decarbonisation targets," she said. "However, the credibility and effectiveness of these efforts are undermined by various critical shortcomings, most notably the inconsistent, often inadequate treatment of methane emissions." While all four banks had set targets to phase out financing for thermal coal mining projects by 2030, they did not set similar targets for metallurgical coal mining that used more methane on average. NAB and Westpac had banned support for new metallurgical mining projects this year, but Ms Knight said they had an opportunity to make a bigger climate impact by addressing methane use. "Reducing methane emissions now could have more immediate results at slowing down global warming," she said. "Banks could be doing more to help achieve this." The institute issued six recommendations to banks in the report including explicitly reporting methane emissions, requiring independent verification of methane emissions from clients, and phasing out finance offered to both thermal and metallurgical coal projects. The report follows research from The Superpower Institute that warned Australia's methane emissions from fossil fuel production could be twice as high as current estimates. It also comes after a Macquarie analysis of the major banks' environmental, social and governance plans in December found they had cut lending to fossil fuel businesses by more than 20 per cent in two years.
Sky News AU
3 hours ago
- Sky News AU
AI could lead to ‘mass unemployment'
Sky News host Freya Leach says AI could be the beginning of 'mass unemployment'. Microsoft is set to cut four per cent of its staff as it shifts towards Artificial Intelligence. Ms Leach said engineering positions can 'all be replaced' by Artificial Intelligence.
