Super fight heats up

Super fight heats up

Annika Smethurst – Herald Sun – Sunday 09 February 2020

Superannuation funds will this week ramp up pressure on rogue Liberal backbenchers who want the government to abandon its plan to increase compulsory contributions.

New data shows two-thirds of workers have no idea how much their employers chip in to their retirement nest egg, while just one in 10 know the rate is due to increase over the next five years.

Prime Minister Scott Morrison, Treasurer Josh Frydenberg and Financial Services minister Jane Hume have all vowed to keep the scheduled super rise, which will see compulsory super contributions increase from 9.5 per cent to 12 per cent of wages between 2021 and 2025.

But Liberal backbenchers Andrew Bragg, Jason Falinski, James Paterson and Tim Wilson have raised concerns about the policy over fears it will take cash from workers who need pay rises now.

The federal government is reviewing the retirement income system, with the report due in June.

Industry Super Australia polling provided to the Sunday Herald Sun shows just 8 per cent of respondents know the contribution rate is on track to hit 12 per cent in 2025.

Industry Super Australia will today launch a new campaign to boost awareness about the increase, making it harder for the federal government to alter the timetable to lift superannuation.

Mr. Paterson told the Sunday Herald Sun it was up to industry super groups to tell workers that “higher super contributions come at the expense of take home pay”. “Australians deserve the facts about superannuation,” he said.

Labor has urged the government not to use its review to justify delaying the increase in the superannuation guarantee.

“Too many Australians retire without adequate retirement savings, which is why our super system needs to be strengthened and protected, not undermined.” Opposition spokesman Jim Chalmers said.

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