Retirement
Industry super slams government over guarantee freeze
Industry Super Australia has attacked Coalition MPs who are arguing to hold superannuation at 9.5 per cent during the COVID-19 pandemic.
Industry super slams government over guarantee freeze
Industry Super Australia has attacked Coalition MPs who are arguing to hold superannuation at 9.5 per cent during the COVID-19 pandemic.
A group of Coalition MPs are calling for the 2021 increase to the superannuation guarantee to be scrapped, arguing the increase to compulsory employer contributions will hinder Australia’s recovery from economic downturn triggered by COVID-19.
They want to prevent compulsory employer contributions rising as planned from the current 9.5 per cent to 12 per cent by 2026.
The Coalition backbenchers – including first-term MPs Katie Allen and Dave Sharma, plus former employment minister Eric Abetz – claim 9.5 per cent is sufficient to fund a dignified retirement for Australian workers.
ISA said it will cost the average couple $150,000 to $200,000 from their retirement and blasted it as a “shortsighted” hit on super that would leave more Australians “languishing” on the pension.
“These MPs are not only out of touch with the community, but also with their leadership, who have said time and time again that they support the staged increases in people’s super that are locked in law,” said ISA chief executive Bernie Dean.
“The Prime Minister and Treasurer wouldn’t want to risk a generation of Australian workers being dumped on the pension to be their lasting legacy; they know we would all pay for that through higher taxes.”
“Australians overwhelmingly support the rate going up slowly as the key to dignity in retirement, giving the average Australian worker choice and control on how they live their later years.”
ISA accused the MPs of using the “specious argument” that an increase to the super guarantee would come at the expense of wages and rebuked the claim, saying that there is no equal drop in wages when the super guarantee increases. The same argument was used to freeze the guarantee in 2014.
“The claim that because Australia is entering a recession that the [super guarantee] rate must be cut doesn’t hold water either, as there is evidence that following the 1991 recession, the rebound in economic growth and employment coincided with an incremental but steady increase in the SG – like what is planned now,” ISA said in a statement.
Senator Jane Hume has already said that the legislated increase in the superannuation guarantee will go ahead on 1 July 2021 despite potentially sweeping industrial relations reforms under the government’s JobMaker scheme.
“It has always been the government’s intention to increase the superannuation guarantee, and we haven’t deviated from that intention or that message,” Ms Hume said.
“That said, I would not be surprised if we get a lot of pushback when that goes ahead next year – particularly from the business community, who [understands] that there is a limited amount of money out there to pay employees, and when you increase the superannuation guarantee, something has to give.”
MPs receive 15 per cent super.
Did you enjoy this article? You might also be interested in:
- Retiring soon and worried about your wealth? You aren't alone
- How will super be used in the next financial crisis?
- How to avoid crystallising a loss with your super
RELATED ARTICLES
About the author
About the author
Superannuation
Half of Australians unaware of impending superannuation law change set to impact millions
In a surprising revelation, a recent study has highlighted a significant knowledge gap among Australian workers regarding a major superannuation reform set to affect over 1.2 million people from 1 ...Read more
Superannuation
Rest strengthens investment strategy with seasoned executive appointment
In a strategic move to bolster its investment strategy, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Andy Moser as the Head of CIO Office. This newly created ...Read more
Superannuation
NGS Super strengthens leadership with appointment of new Chief Member Officer
In a strategic move to bolster its member growth and experience transformation, NGS Super has appointed Adam Parsons as the new Chief Member Officer (CMO). Effective from 1 June 2026, Parsons will ...Read more
Superannuation
Aware Super triumphs at Chant West Super Fund Awards with top honours
In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more
Superannuation
NGS Super rolls out enhanced member advice services with a focus on accessibility
In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more
Superannuation
US data centre investment highlights the benefits of decarbonisation and digitalisation
In a compelling demonstration of the global shift towards decarbonisation and digitalisation, Rest, one of Australia's largest profit-to-member superannuation funds, has underscored the value created ...Read more
Superannuation
Aware Super bolsters support for financial advisers amid growing partnerships
In a strategic move to enhance its growth trajectory, Aware Super has announced a significant investment in bolstering support for financial advisers, aiming to deliver superior retirement outcomes ...Read more
Superannuation
TelstraSuper and Aware Super merge, creating a powerhouse with over $235 billion in funds
In a strategic move that underscores the growing trend of consolidation in the superannuation industry, TelstraSuper and Aware Super have successfully completed their merger, creating a formidable ...Read more
Superannuation
Half of Australians unaware of impending superannuation law change set to impact millions
In a surprising revelation, a recent study has highlighted a significant knowledge gap among Australian workers regarding a major superannuation reform set to affect over 1.2 million people from 1 ...Read more
Superannuation
Rest strengthens investment strategy with seasoned executive appointment
In a strategic move to bolster its investment strategy, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Andy Moser as the Head of CIO Office. This newly created ...Read more
Superannuation
NGS Super strengthens leadership with appointment of new Chief Member Officer
In a strategic move to bolster its member growth and experience transformation, NGS Super has appointed Adam Parsons as the new Chief Member Officer (CMO). Effective from 1 June 2026, Parsons will ...Read more
Superannuation
Aware Super triumphs at Chant West Super Fund Awards with top honours
In a significant achievement for Aware Super, the fund has clinched top honours at the Chant West Super Fund Awards, securing both the Super Fund of the Year and Pension Fund of the Year titlesRead more
Superannuation
NGS Super rolls out enhanced member advice services with a focus on accessibility
In a significant move to make financial advice more accessible, NGS Super has unveiled an enhanced suite of member advice services, featuring a new digital advice platform. This initiative aims to ...Read more
Superannuation
US data centre investment highlights the benefits of decarbonisation and digitalisation
In a compelling demonstration of the global shift towards decarbonisation and digitalisation, Rest, one of Australia's largest profit-to-member superannuation funds, has underscored the value created ...Read more
Superannuation
Aware Super bolsters support for financial advisers amid growing partnerships
In a strategic move to enhance its growth trajectory, Aware Super has announced a significant investment in bolstering support for financial advisers, aiming to deliver superior retirement outcomes ...Read more
Superannuation
TelstraSuper and Aware Super merge, creating a powerhouse with over $235 billion in funds
In a strategic move that underscores the growing trend of consolidation in the superannuation industry, TelstraSuper and Aware Super have successfully completed their merger, creating a formidable ...Read more
