Retirement
Hume flip-flops on super cut
Superannuation Minister Jane Hume has warned that the SG increase is a bad idea – but that the Morrison government hasn’t committed to cutting it.
Hume flip-flops on super cut
Superannuation Minister Jane Hume has warned that the SG increase is a bad idea – but that the Morrison government hasn’t committed to cutting it.
Speaking to media, Jane Hume said that while the increase to 10 per cent – currently set for July of this year – has been legislated, “don’t for a second think that doesn’t come with a trade-off”.
“Money doesn’t grow on trees, and there is a good chance that if there is an additional cost to employers when they pay that extra 0.5 per cent, that it will come at the expense of, potentially, wage rises in the future,” Ms Hume said.
“Everything this government is doing is about increasing the number of jobs and increasing wages. So this – while it’s already been legislated and has been legislated for some time – comes at a cost.”
Ms Hume said that Prime Minister Scott Morrison would assess the situation closer to the budget but that the increase couldn’t “come at a worse time”, echoing recent comments from Treasurer Josh Frydenberg that government must “rightfully and carefully consider the implications” of the SG increase before moving ahead.
“It is simply not true, as some would have us believe, that there is virtually no limit to how high the superannuation guarantee can be increased in the name of delivering ever higher retirement incomes. Indeed, for some, there isn’t a problem that cannot be solved through a higher rate of compulsory superannuation,” Mr Frydenberg said.
The government’s failure to commit to a course of action has frustrated its critics, including Industry Super Australia (ISA), which on Friday launched a new “Fox and Henhouse” style campaign to force its hand on the matter.
“Some federal politicians want to break an election promise and cut super, forcing Australians to work longer or retire with less. It’s time for the government to stop messing with super and deliver their promise to workers,” said ISA chief Bernie Dean.
“Australians may have to choose between a financially secure retirement or selling their family home – that’s an unfair choice no one should have to make.”
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