Superannuation increase a burden on employers

“The Federal Government is misleading the community with a claim that the mining tax will cover the cost of the increase in the superannuation guarantee – employers are actually the ones who will pay,” said Daniel Farmer, Central Coast NSW Business Chamber Regional Manager.

“The Government seems to be engaged in a relentless campaign to shift the cost of government policies onto the shoulders of employers – carbon tax, mining tax, paid parental leave, and now increased superannuation. There is only so much employers can bear before it starts having an impact on the viability of businesses and, as a result, jobs.

“The proposed increase in the superannuation guarantee is just another increase in the cost of running a business and a further disincentive to employing Australians. The Henry Review specifically looked at the issue of superannuation, and found that the current 9% was adequate.

“If the Government is serious about increasing the retirement savings of low income earners, there is significant scope for reform within the existing system before slugging employers with what will be an additional $20 billion a year when the increase is in full force.

“The Government seems to be pursuing this increase to deal with the challenge of Australia’s ageing population, but baby-boomers will see little or no benefit from this when they retire. Better aged-based, means-tested, co-contributions and increased aged-based contributions caps would provide a better outcome where the savings are desperately needed.

“It’s a bit rich for the superannuation industry to be advocating the spending of someone else's money and agitating for the Government to break its 2007 election promise not to raise the levy.

“The financial services and superannuation industries need to focus on improving their returns and lowering their fees and commissions to provide better retirement incomes for Australians rather than asking employers to prop up their balance sheets.”

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