Any government plan to halt super guarantee contribution (SGC) increases would be hypocritical and a breach of an election promise made by Prime Minister Scott Morrison, according to the opposition.
Opposition financial services and superannuation spokesman Stephen Jones said any government plan to stop SGC increases would represent a substantial change to the operation of the super system.
“The Prime Minister is mulling a plan to cut super despite saying he had no appetite for big changes, but there can be no bigger change than this,” Jones said during a presentation at the virtual SMSF Association National Conference 2021 today.
“Cutting the super guarantee would be a breach of a fundamental promise the Prime Minister gave before the last election and would mean the electorate could no longer trust anything the government said on superannuation.”
He said the ability to rely on government promises and policy was a key issue for long-term planning for retirees and their advisers, who could not always be certain of investment markets or returns, and it was hypocritical for government ministers and backbenchers to support a halt to SGC increases.
“When looking at those who are pushing these cuts, it is hypocrisy,” he said.
“The key players in the push to cut the SGC have enjoyed a lifetime of superannuation delivered at rates well above the average. The Treasurer [Josh Frydenberg], the Prime Minister and the backbenchers pushing for these changes all earn more super in one term of government that many retirees could expect to get after a lifetime of work.
“They seek to keep others hanging at 9.5 per cent when they themselves pull in 15.4 per cent,” he added, encouraging conference attendees to ask their members of parliament or state senators why this should be the case.
“You might like to ask why 15.4 per cent is fair for them while 9.5 per cent is alright for everyone else. Ask if they think it’s fair if they put away more in four years than the average woman retires with over her entire working life.”
