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Christian Super applauds decision to raise Baptist Ministers’ Superannuation

Christian Super has applauded the decision by the Baptist Union of NSW and ACT to increase the superannuation levy for Ministers of Religion to 11 percent, from the legislated nine percent.

“We had discussed the difficulties that ministerial packaging has created for superannuation entitlements for ministers with representatives from the Baptist Union for some time” said Christian Super CEO, Peter Murphy.

“Firstly we found that in general, minister’s superannuation account balances were lower than those in other professions with most ministers not having a specific retirement age, rather moving from full-time positions to interim appointments,” said Peter.

“While ministers are generally provided with a manse and are able to access taxation benefits for the purchase of cars and some living expenses, this actually reduces the dollar amount that is paid into their superannuation fund, which means at retirement, they are almost $90,000 worse off than someone in a similar profession, who doesn’t have access to the same benefits,” Peter said.

“We also found that the provision of a manse meant that there was no incentive by the minister to save or manage a weekly budget, in the same way as someone in the regular workforce,” he said.

Alan Soden, General Secretary for Baptist Churches in NSW and ACT said, “The government has put in place unique taxation arrangements for ministers of religion and, as a result, more churches can afford to pay the stipend for a full-time pastor.”

“The downside of this is that because ministers’ base income is typically low, with a nine percent contribution rate, the superannuation accruing will likely be inadequate to provide for pastors and their families in retirement.” Mr Soden said. “That’s why the Baptist Union of NSW decided to recommend the contribution for Baptist pastors be increased to 11 percent,” he said.

For more information, visit www.christiansuper.com.au

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