Industry super funds lash 'out of touch' Coalition MPs over call to freeze rate
The nation's major industry superannuation funds have lashed the Coalition MPs who want to delay lifting the compulsory contribution amid the economic fallout from the coronavirus pandemic.
Industry Super Australia has labelled the MPs "out of touch" for themselves receiving more than 15 per cent super, but arguing that 9.5 per cent is enough for the average Australian to fund a dignified retirement.
Industry Super Australia chief executive Bernie Dean said the Coalition MPs are using a false argument to push for a freeze in the super rate.Credit:Peter Braig
Prime Minister Scott Morrison said current policy and legislation enabling a gradual increase between July 1 next year and 2025 was "in place" and he was "totally focused" on ensuring the welfare net of the JobKeeper and JobSeeker programs were best designed to support Australian workers.
"If policies get reviewed at any point in time, well that's a consideration for that time," Mr Morrison said on Monday.
"That's not something that's occurring at the moment. What we're doing right now is we are focused on getting people back into jobs and reopening the economy is a critical part of that".
After a group of 10 Coalition MPs told The Age and The Sydney Morning Herald the increase in the superannuation guarantee should be frozen, ISA says that would slash up to $200,000 from the savings of Australian families.
The government's wide-ranging retirement income review, led by former Treasury official Mike Callaghan, is poised to hand down its findings on the merits of higher compulsory super – among other policy settings – on July 24, before the October budget.
Industry Super Australia chief executive Bernie Dean accused the group of using the coronavirus caused downturn as "cover" to have the the legislated super rate increase scrapped or frozen.
"These MPs are out of touch not only 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," Mr Dean said.
"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."
He said the Coalition used the same argument in 2014 to freeze the super guarantee but wages had mostly flat-lined since then, which underlined "the falseness of their arguments".
"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," he said.
Opposition treasury spokesman Jim Chalmers said the renewed calls from within the government's backbench just weeks before the retirement income review was due was "extremely concerning".
Mr Chalmers said the COVID-19 crisis should not be an excuse for more attacks on Australia's world-class super system.
Jim Chalmers said the COVID-19 crisis should not be an excuse for more attacks on Australia's super system.Credit:Alex Ellinghausen
"It's clearer than ever that Scott Morrison created the Retirement Income Review as a stalking horse for more cuts to super," Mr Chalmers said.
"More workers will be left behind in their retirement if this Liberal Government again delays the long-overdue increase to the Superannuation Guarantee that they were promised, have earned, and deserve."