ACTU challenges Morrison on super delay
Australia’s peak union organisation, the Australian Council of Trade Unions (ACTU) has warned the Prime Minister, Scott Morrison, against trying to use wages growth as an excuse for further delaying the superannuation guarantee (SG).
The ACTU president, Michele O’Neil said that the Government had already delayed raising the SG under the former Abbott Government and there had been no growth in wages.
She said that Morrison’s comments that he is considering scrapping the superannuation increase from 9.5% to 12% by 2025 should be a concern for every Australian working to secure a dignified retirement. The first increase of only half a percent is due in July 2021.
“Cutting the super guarantee won’t result in higher wages, it’ll just result in less retirement savings. We know this because its already happened,” she said. “Since the Government last delayed the increase in super from 9.5 per cent to 12 per cent on the promise of higher wages, we have seen record low wage growth.”
“Even before the pandemic hit, our wage growth was anaemic growing at less than 0.5% each year in real terms since the super freeze started. Employers have already told us that they have no plans for wage increases.”
“The same grim forecasts on wages are being made by the Reserve Bank and the Treasury. Those in the public sector have been told that governments plan wage freezes in the coming months and years. Those in the private sector are barely holding onto their jobs, let alone seeing their employers talk about wage rises.”
“We’ve seen this movie before – delaying the super increase won’t result in higher wages, it’ll just result in less retirement savings.”
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
