WINDING BACK THE LEGISLATED SUPER GUARANTEE IS A WAGE CUT IN DISGUISE

The Superannuation Guarantee is about ensuring that every Australian retires with dignity and independence. The solution to record low interest rates, record household debt and historically stagnant wage growth is not to rob almost 13 million Australians of the super increases they need, deserve and have been promised.

This morning, Shadow Assistant Treasurer Stephen Jones slammed Liberal attacks on bipartisan legislation to raise the Superannuation Guarantee over the weekend, calling the idea a wage cut in disguise.
 
It is concerning that the best idea the Liberals have is to defer a 0.5 per cent super payment not due until 2021 that has been twice postponed and on the books now for 6 years now.
 
Cutting retirement income is not a fiscal strategy. It’s a wage cut.
 
The Super Guarantee increases are worth 0.5 per cent per annum in five yearly instalments between 2021 and 2025. This is one-seventh of the Treasury’s own forecast for wage growth over the same period.
 
To claim that employers are going to pay workers more when they don’t have to simply isn’t plausible.
 
To suggest that cancelling modest superannuation increases not set to take place for another two years will wages will increase today is fanciful.
 
The biggest losers of the wind-back of the bipartisan and already legislated super guarantee increases will be low paid workers and women, who are already retiring today with up to 47 per cent less superannuation than men.
 
FACT: When the scheduled increase to 10 per cent in 2015 was cancelled, wage growth did not rise. 
 
FACT: Analysis by actuarial firm Rice Warner shows that without the further lift in super, most working Australians will be forced to rely on the Age Pension for most of their retirement income.
  
Labor is committed to getting workers’ Superannuation Guarantee to 12 per cent. The original timetable has already been delayed twice, and that this has cost workers who are retiring today between $60,000 and $100,000 in their superannuation balance.
 
The Liberals have tried time and time again to gut the incomes of retirees and pensioners by cutting the pension, trying to increase the pension age to 70, and delaying the increase to the Superannuation Guarantee. We cannot allow this to be repeated.

TUESDAY 8 OCTOBER 2019