Shorten pushing SG debate into wages arena
The Federal Government has sought to move the debate around lifting the superannuation guarantee further into the wages arena.
The Assistant Treasurer and Minister for Financial Services, Bill Shorten, said lifting the SG to 12 per cent would mean workers foregoing wage increases.
Further, he told the Association of Superannuation Funds of Australia conference that the good news for employers was that they would not need to pay workers compensation or other on-costs on those foregone wages.
The minister said the SG increase was necessary to help alleviate longevity risk in Australia and the pressure likely to be imposed on the age pension.
"Going to 12 per cent is vital and it cannot be taken for granted," he said.
"Unless we can get 75 votes in the Federal Parliament a 12 per cent SG will remain a hope without becoming a reality.
"One of our greatest challenges is longevity risk and income adequacy in retirement," Shorten said.
By placing a SG increase more firmly into the realm of foregone wages, Shorten has effectively moved discussion away from implementation of a super profits resource rent tax.
The minister also this week reaffirmed the Government's commitment to both Superstream and MySuper.
AUTHOR
Mike Taylor
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