Economists from across the ideological and political spectrum have backed a union-led call to stay the course on planned superannuation rises.
Liberal backbenchers have been pushing for the planned increases to be cancelled, and have received the support of high-profile ministers including Assistant Minister for Superannuation Senator Jane Hume. The planned increases would bring the superannuation rate from 9.5% to 12% over the next five years.
Sue Richardson, an economist from Flinders University and a former member of the Fair Work Commision’s wages panel, said that the current super rate was “not enough to have the desired effect of providing an adequate retirement income.”
Former Liberal Party Leader John Hewson concurred, saying that any postponement or cancellation of the proposed increase would have impacts on unemployment, job security and wages.
“Compulsory super has become a fundamental element in an effective national retirement incomes strategy. [We] need to finish the job,” he told The Conversation.
Harry Bloch from Curtin University warned of future impacts that cancelling superannuation increases would have on future governments and generations.
“Future governments will have more difficulty in financing the old-age pension at a reasonable level” if the super guarantee is not lifted, he says.
Other opponents of the superannuation freeze include former Trade Minister Dr Craig Emerson, Emily Lancsar from the Australian National University, and Uwe Dulleck from the Queensland of Technology.
The union movement, including the NSW Nurses and Midwives’ Association, remains opposed to the attacks by members of the Liberal Party on superannuation.
Australian Unions are hosting an Emergency Superannuation Summit this Monday, 28 September. Tune in here.