Tim Wilson says a super raise would cost jobs and wages. Picture: Dean Lewins/AAP
Tim Wilson says a super raise would cost jobs and wages. Picture: Dean Lewins/AAP

MPs want super rise dumped

Labor has accused coalition MPs lobbying for a delay in raising the superannuation guarantee of trying to force more people to retire in poverty.

Almost a dozen backbenchers have called for the government to delay the legislated rise from 9.5 to 12 per cent because of the coronavirus-induced economic crisis.

Senior opposition frontbencher Tanya Plibersek said it continued the trend of Liberals and Nationals looking to smash superannuation.

"It's just one more way of ensuring people retire in poverty," she told the ABC on Monday.

Ms Plibersek criticised the government for allowing people to access retirement savings early for discretionary spending, as part of the coronavirus support plan.

"This government does not know how to look after peoples' retirement savings and it's a recipe for disaster for many, many Australians," she said.

Tim Wilson says a super raise would cost jobs and wages. Picture: Dean Lewins/AAP
Tim Wilson says a super raise would cost jobs and wages. Picture: Dean Lewins/AAP

Ten MPs have told The Age and The Sydney Morning Herald that small and medium-sized businesses cannot afford a higher rate of compulsory super.

Liberal MP Tim Wilson said increasing the guarantee would cost jobs and wages.

"If we go down this path at this time it will increase unemployment," he told Sky News.

"If it's a choice between increasing the super guarantee now and going back to work, I'll back Australians going back to work."

He said Labor needed to move away from their "puppet masters" in industry super funds.

Legislated super guarantee increases will lift the current rate of 9.5 per cent to 10 per cent from July 2021, before edging 0.5 percentage points higher each year until it reaches 12 per cent in July 2025.

EARLY ACCESS TO SUPER A MISTAKE

Almost half a million Aussies are risking their financial future as the government prepares to pay out $3.8 billion in superannuation.

Australians who have taken a hit due to the COVID-19 pandemic have been able to apply for the early release of their super from April 20.

The Federal Government recently announced retirement funds would be made available to those experiencing financial hardship because of the coronavirus crisis.

Eligible Aussies will be able to grab $10,000 from their super this financial year and a further $10,000 in 2020-21, with applications being accepted through Australian Taxation Office online services in myGov.

In April, Treasurer Josh Frydenberg announced the Australian Taxation Office had already approved 456,000 applications, totalling $3.8 billion.

"Those applications are now with the superannuation funds for their payment over the next five days. The average withdrawal is around $8000," he said.

"The ATO has also paid out $3 billion to 177,000 businesses employing 2.1 million Australians as part of our cashflow boost measures which was a measure designed to support businesses, keep people employed, meet their fixed costs, by linking those payments - up to $100,000 and a minimum $20,000 - to those pay rolls."

 

- AAP


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