Retirement
Keating attacks super withdrawal as a burden on young Australians
Former prime minister Paul Keating has slammed the Morrison government’s controversial early access to superannuation scheme, saying it shifts the burden of economic stimulus onto younger Australians.
Keating attacks super withdrawal as a burden on young Australians
Former prime minister Paul Keating has slammed the Morrison government’s controversial early access to superannuation scheme, saying it shifts the burden of economic stimulus onto younger Australians.
During an Industry Super Australia event, the man who brought in superannuation highlighted that younger Australians shouldn’t need to stimulate the economy through superannuation, due to low government debt relative to GDP.
“Of the income support in Australia to date in this COVID emergency, $32 billion has been found and paid for by the most vulnerable and lowest paid people in the country. That is the people who have withdrawn the full $20,000.
“$30 billion has been provided by the Commonwealth under JobSeeker and JobKeeper.”
“Instead of JobKeeper and JobSeeker carrying the main burden of income support. What we are finding is the main burden of income support is people ratting their own savings,” Mr Keating said.
The former PM noted the ISA research, which has found that 600,000 younger people have completely withdrawn their superannuation savings under the government’s early access scheme.
Mr Keating also pointed out that younger Australians are getting the double whammy of being asked to support the country despite politicians looking to stop superannuation rising to 12 per cent.
“The same things were said when I introduced the superannuation guarantee in 1993. Remember it went up 7 percentage points, up 1 per cent a year out of the recession of 1990,” Mr Keating said.
“A lot of the so-called economic commentators were saying this is not the time, the nation can’t afford this.
“Of course, the SG was completely affordable. We had the profit share in the economy rising, as we did the wage share. We had strong growth in employment all through the 1990s.”
The former PM also pointed out that since 2013 there has been no real wage growth, while productivity growth has increased by 9.6 per cent.
“None of this has been distributed to wages. It all went to the balance sheet of companies. So, the proponents of the SG going to 12 per cent are saying there’s 10 per cent labour productivity banked, and we are asking for a quarter of it back,” Mr Keating said.
Mr Keating finally pointed to an ageing population, with the burden falling on younger Australians.
“I think the killer point is this. When I introduced the SG, six and half people between 15-65 [in the workforce] maintained one person aged over 65. It has fallen to 3.5 now and falling,” Mr Keating said.
“So, we will reach a point where three Australians will be carrying each retired person for the public pension and public health,” the former PM concluded.
RELATED ARTICLES
About the author
About the author
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
