We have some positive news on an issue we know has been front of mind for many of you: the Social Security changes proposed as part of the GST+ package. 
Following sustained engagement by the Chamber on your behalf – the Government is revising its proposals in ways that directly reflect the concerns you raised.
We had been pressing government hard on three key asks: transparency on changes, a more gradual phasing of any increases, and a simplified and fair alignment between the treatment of employed and self-employed individuals.
The key outcomes we expect to see in revised proposals are:
  • Phasing: Employer Social Security rates will increase more gradually, rising to 7.6% (by 2031) rather than the originally proposed 8% (in 2028) – a meaningful difference when set against the backdrop of multiple simultaneous cost pressures.
  • Fairness: The treatment of employed and self-employed individuals will be aligned, with an income tax deduction introduced for employer contribution. This was a clear ask from members and we are pleased to see it addressed.
  • Earned income only: Social Security for employees and self-employed individuals will apply only on earned income, reducing the wider impact on workers.
  • Balanced package: Adjustments will be made to the Social Security allowance and the 20% income tax threshold to balance the overall package.
None of this happened by accident. It is the direct result of your feedback, and the Chamber’s consistent, evidence-based approach with government. This is exactly the kind of outcome that demonstrates why your membership of the Chamber matters, and what effective partnership between business and government looks like.
We will continue to monitor the detail as the revised proposals are brought forward for States debate, and we will keep you informed at every stage.