Super Increase At Risk If Federal Government Changes Legislation

Scott Morrison’s government could see the super guarantee increase scrapped. Photo by Marian Sampson.

 

WORKERS across the country are about to see an increase in the Super Guarantee Contributions providing the legislated increase is maintained.

There are hopes that the super rate increase will power economic growth, job creation and wage rises.

Increasing the super guarantee to 12 per cent is forecast to lead to a bigger economy, more jobs, higher real wages, and higher real incomes, new independent research has found.

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Former Prime Minister Malcolm Turnbull joined Industry Super Australia Chair Greg Combet to launch the report by ACIL Allen, which shows the economy will grow by an extra $12 billion, wages will grow and more than 10,000 jobs will be created if the super guarantee increases as legislated.

It is the first study that comprehensively measures all the economic factors involved in the relationship between super and wages, debunking claims there is a simplistic, direct trade-off between the two whereby super disappears into a blackhole without making any contribution to the broader economy.

It finds the billions available in extra capital will expand the economy, leading to a demand for more labour – which in turn fuels wage growth.

Ultimately, more money will flow into workers’ pay packets over the medium and long-term, ultimately leaving both the economy and all Australian workers better off.

With billions of dollars of additional investment driving economic growth, jobs and productivity, increasing the super guarantee will give our economy the boost it needs to continue its recovery.

However, the increase is under threat, there are those who want the Prime Minister to break his promise and cut the super rate will need to explain to Australians why they want to cut $12 billion in economic growth, cut wages and cost 10,000 jobs.

The Hon. Malcolm Turnbull, 29th Prime Minister of Australia said, “Australia’s superannuation system is the envy of the world.”

“The legislated increase to 12% should be maintained, not just to deliver a more secure retirement for millions of Australians, but to build stronger economic growth and higher wages.”

Should parliament vote to change the legislation they will be voting to cap the superannuation guarantee for Australians at a much lower rate than that they themselves receive with parliamentarians receiving contributions of 15.4 per cent from the government.

Cutting super will also add more than $33 billion to the aged pension, a burden we all pay through higher taxes.

For a region where people choose to retire to, more in the kitty means a greater quality of life in the long term.

 

By Marian SAMPSON

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