The freeze on the superannuation guarantee for seven years and pushing back its move to 12 per cent until 2025 is staggeringly short-sighted policy. It will hurt 9 million workers, damage the national savings pool, curtail investment in infrastructure and hoist the problems of an ageing population and a structural budget deficit on future generations of taxpayers. The short-term political fix cooked up between the federal government and the Palmer United Party to repeal the mining tax is at complete odds with the end of the age of entitlement frame that Treasurer Joe Hockey has been at pains to sell. A recent Galaxy survey commissioned by Sunsuper found that 77 per cent of businesses plan to keep the money saved from SG increases in their businesses rather than give their employees a pay rise. We cannot hope to improve retirement incomes to levels required to take the pressure off the public purse and the ageing, taxpaying workforce, if we just keep kicking the can down the street for future generations. Its poor policy writ large.
Posted on: Sun, 14 Sep 2014 00:57:08 +0000
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