This morning, Shadow Assistant Treasurer Stephen Jones called on Scott Morrison to end the white anting of Australia’s superannuation system and provide certainty for Australians retirement savings.
New analysis by former senior Treasury officials Phil Gallagher PSM and Bruce Bastian has yet again demonstrating that there is no zero-sum-game between super and wages.
ISA’s analysis of the association between wages and the super rate shows the potential effect of the bipartisan legislated Superannuation Guarantee increase to 12 per cent could have on a person’s working life income is less than one per cent.
Not only is there no zero-sum-game between wages and superannuation – everyday Australians will be better off in retirement and better off overall from a rise in the superannuation guarantee.
The problem with low wage growth is low wage growth, not superannuation.
It is clear Coalition MPs want to cut super entitlements and make superannuation voluntary.
We don’t need an imagination to know what this looks like. We don’t need modelling to know what this looks like – we just need a memory. It is what super accounts of average Australians looked like before compulsory super existed.
Voluntary superannuation would mean workers in desperate situations will pay more tax on the income they divert from retirement savings, and have less in super at the end of their working lives.
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 Prime Minister needs to immediately reaffirm the Government’s commitment to a dignified retirement for all Australians and publicly commit to the already legislated Super Guarantee.
THURSDAY 10 OCTOBER 2019