Unions will move to boost superannuation guarantee at ALP conference   [smiley=thumbsup.gif] 
ALP super.
Dec 14 2018 New Daily.

The union movement will push for a rise in the superannuation guarantee (SG) to 15 per cent by 2030 at the Australian Labor Party National Conference in Adelaide this weekend.

The motion will first call for pushing the SG up to 12 per cent by 2023, two years ahead of the current target of 2025. And parliamentary party leader Bill Shorten has not ruled out backing the move.

The unions will also call for a controversial ban on for-profit superannuation funds in the wake of the scandals uncovered by financial services royal commission. However, that is unlikely to receive support at the conference, with shadow Treasurer Chris Bowen saying he was “not interested in advantaging one sector of super over the other”.


The Transport Workers Union, along with the militant Construction, Forestry, Mining and Energy Union, will put a motion to the conference aimed at reversing the Abbott government’s decision to delay raising the SG to 12 per cent until 2025. A Labor government had earlier planned to reach 12 per cent by 2019.

A TWU spokeswoman said the wording would be as follows:

“Labor will protect and grow superannuation to provide a comfortable retirement for all Australians. This will include … fast-tracking the Superannuation Guarantee increase to 12 per cent, to provide millions of Australians with higher retirement incomes.”

The SG increases would be set at 0.75 per cent a year from the time Labor got to power, the motion will say. That would push the SG to 12 per cent by 2023, two years before the current target.
15 per cent the next target

The motion will also call for legislating for the SG to be pushed to 15 per cent by 2030. If accepted by the party, that would be a significant reform as both Labor and the Coalition government are currently only committed to the SG reaching 12 per cent.

Labor shadow Financial Services minister Clare O’Neil was supportive of the planned motions, but did not commit the parliamentary party to directly support them.

“Our movement built superannuation, we are proud of it and many people at National Conference will be engaged in a conversation about how to improve it – that’s a good thing and that’s a healthy political party in action.”

“We’re looking forward to discussing superannuation policy at national conference,” Ms O’Neil said.

The prospect of a quicker than planned SG rise to 12 per cent was welcomed by the superannuation industry. A spokesman for Industry Super Australia told The New Daily the group was “very supportive of the move”.

“The current rate of increase is too low and we think it should be accelerated.”

Martin Fahy, CEO of the Association of Superannuation Funds of Australia, said “ASFA has long advocated for moving the Superannuation Guarantee to 12 per cent and we support any initiatives to get there as quickly as possible”.

An Australian Council of Trade Unions spokesman said the group supported speeding up the SG increases.
Bosses baulk

However, employer groups were against the move, with Scott Barklamb, workplace relations director at the Australian Chamber of Commerce and Industry, warning “against bringing forward scheduled increases in superannuation contributions” which currently are not scheduled to rise till mid 2021.

“Australian business cannot see any case to change approach midstream, departing from the timetable for increases adopted by our Parliament in 2014,” he said.

Innes Willox, CEO AI Group, said: “If wage rates, prices and productivity were to remain unchanged, raising the SG in stages would lift the costs of employment and slow investment and the pace of jobs creation.”

Peter Strong, CEO of small business group COSBOA, said “the community will pay for it if there is no commensurate productivity rise.”

Assistant Treasurer Stuart Robert said the Coalition did not want to change the SG policy.  “The Morrison Government is committed to increasing the Superannuation Guarantee to 12 per cent by 2025. It is important that people have certainty around how much their compulsory superannuation contributions will be into the future so they can plan accordingly.”

A rise in the SG to 12 per cent would see superannuation costs for employers rise $2.8 billion in current dollars.

They could move the Superannuation Guarantee to 15% in one go if they found a way to abolish payroll tax.

Yes a great move, This can only be done in a Labor term.

The Liberals hate old people and find them eating dog food to be entertaining.

Not that there is anything wrong with that.

Funny that the Liberals have spent 22 years blocking all increases to the supper guarantee and at the same time are in tears because the pension is unaffordable, people have to work longer.

Yes they are crying about the results of their own actions. Dumb as dog doo doo.

Yes and what a ridiculous idea it was, putting the pension retirement age up to 70 years old in the first place.   :(   

whiteknight wrote on Dec 15^th, 2018 at 8:41am:

Yes and what a ridiculous idea it was, putting the pension retirement age up to 70 years old in the first place.   :(

Yes. Jobs are in short supply. It is madness to be increasing the pension age without a policy to deal with the resulting increase in unemployment.

Well said Bam.  A government funded retirement pension age of 65 is more than enough.  I know labor is putting it up to 67, but even that is not the way to go.   :(

Bam wrote on Dec 15^th, 2018 at 7:27am:

They could move the Superannuation Guarantee to 15% in one go if they found a way to abolish payroll tax.

Not quite. Payroll tax is levied only on corporations that exceed the payroll threshold. Here in NSW that's a payroll of $850,000. There's a lot of companies that don't have payrolls this size.

crocodile wrote on Dec 15^th, 2018 at 9:43am:

Bam wrote on Dec 15th, 2018 at 7:27am: They could move the Superannuation Guarantee to 15% in one go if they found a way to abolish payroll tax. Not quite. Payroll tax is levied only on corporations that exceed the payroll threshold. Here in NSW that's a payroll of $850,000. There's a lot of companies that don't have payrolls this size.

While technically correct, it doesn't address the problem that payroll tax is a bad tax that really should be abolished. Why tax jobs? It's stupid. It creates a strong disincentive to create jobs, especially for small businesses where creating one additional job would put the company over the threshold.

Bam wrote on Dec 15^th, 2018 at 11:48am:

crocodile wrote on Dec 15th, 2018 at 9:43am: Bam wrote on Dec 15th, 2018 at 7:27am: They could move the Superannuation Guarantee to 15% in one go if they found a way to abolish payroll tax. Not quite. Payroll tax is levied only on corporations that exceed the payroll threshold. Here in NSW that's a payroll of $850,000. There's a lot of companies that don't have payrolls this size. While technically correct, it doesn't address the problem that payroll tax is a bad tax that really should be abolished. Why tax jobs? It's stupid. It creates a strong disincentive to create jobs, especially for small businesses where creating one additional job would put the company over the threshold.

Yes, it wasn't addressed because it wasn't asked. It is a poor tax. A tax with a rate of around 5% with a deadweight loss of over 40c in every dollar should have disappeared long ago.

http://taxreview.treasury.gov.au/content/html/publications/papers/Final_Report_Part_1/image/01_Part_1-6.gif

crocodile wrote on Dec 15^th, 2018 at 11:11pm:

Bam wrote on Dec 15th, 2018 at 11:48am: crocodile wrote on Dec 15th, 2018 at 9:43am: Bam wrote on Dec 15th, 2018 at 7:27am: They could move the Superannuation Guarantee to 15% in one go if they found a way to abolish payroll tax. Not quite. Payroll tax is levied only on corporations that exceed the payroll threshold. Here in NSW that's a payroll of $850,000. There's a lot of companies that don't have payrolls this size. While technically correct, it doesn't address the problem that payroll tax is a bad tax that really should be abolished. Why tax jobs? It's stupid. It creates a strong disincentive to create jobs, especially for small businesses where creating one additional job would put the company over the threshold. Yes, it wasn't addressed because it wasn't asked. It is a poor tax. A tax with a rate of around 5% with a deadweight loss of over 40c in every dollar should have disappeared long ago. http://taxreview.treasury.gov.au/content/html/publications/papers/Final_Report_Part_1/image/01_Part_1-6.gif

Something we agree on. I've been questioning payroll tax for some time.

Of course the unions will do anything to save industrial super because it is their main source of funds now that they have almost no members anymore.

Super announcement will help recover stolen savings   :)
16 December 2018
ACTU

The peak body for working people has welcomed Bill Shorten’s commitment to include the superannuation guarantee in the National Employment Standards under a future ALP government.

This change will ensure that working people and their unions will be able to pursue stolen super through the industrial umpire, rather than waiting and relying on the ATO to do something for them.

Research by Industry Super Australia has shown that $5.9 billion of working people’s super is stolen each year.   :(

One in three workers are having their super stolen with an average of $1,994 per year or $77 per fortnight stolen from each worker.

Young workers and those in insecure work are most vulnerable, part time and casual workers making less than $30,000 per year are 33% more likely to have super stolen than full time workers on higher salaries.

Today’s announcement recognizes that superannuation is a workplace right, and placing the right to super in the Fair Work Act will ensure it is and remains solely an industrial instrument.

Quotes attributable to ACTU Assistant Secretary Scott Connolly:

“Australia’s universal superannuation system should ensure that everyone has a right to a dignified and comfortable retirement.

“Working people gave up pay rises to establish and extend our super system to everyone, and the Labor party and the labour movement have been its custodians and champions for the last three decades.

“Today’s announcement extends this commitment. It ensures that working people who have their retirement savings stolen will be able to go to the independent umpire and get their money back.

“It will let working people take action through the independent umpire and give people who’ve had their super stolen swift, low-cost, plain-language access to justice. 

“On behalf of the Australian union movement I welcome this announcement.”

LOL


say goodbye to wage rises then.

and that will be great news for the guys in suits who skim a percentage off the account balance and then spend it on their yachts and mistresses

aquascoot wrote on Dec 18^th, 2018 at 7:05am:

LOL say goodbye to wage rises then. and that will be great news for the guys in suits who skim a percentage off the account balance and then spend it on their yachts and mistresses

A boost to the super guarantee IS A WAGE RISE

A person who earns $450 per month or more is entitled to be paid super by the employer

Lets kept it simple & work on the minimum

9.5% of $450 is $42.75

12 % of $450 is $54.00

So its a pay rise of $11.25 in that month.

Dsmithy70 wrote on Dec 18^th, 2018 at 10:53am:

aquascoot wrote on Dec 18th, 2018 at 7:05am: LOL say goodbye to wage rises then. and that will be great news for the guys in suits who skim a percentage off the account balance and then spend it on their yachts and mistresses A boost to the super guarantee IS A WAGE RISE A person who earns $450 per month or more is entitled to be paid super by the employer Lets kept it simple & work on the minimum 9.5% of $450 is $42.75 12 % of $450 is $54.00 So its a pay rise of $11.25 in that month.

Productivity growth is zero at the moment. It is only a temporary wage rise as long as future possible wage rises are not eroded to the same extent over time. Of course, for those that are forced out of work by a wages bill not aligned to productivity it is a substantial pay cut.

Dsmithy70 wrote on Dec 18^th, 2018 at 10:53am:

aquascoot wrote on Dec 18th, 2018 at 7:05am: LOL say goodbye to wage rises then. and that will be great news for the guys in suits who skim a percentage off the account balance and then spend it on their yachts and mistresses A boost to the super guarantee IS A WAGE RISE A person who earns $450 per month or more is entitled to be paid super by the employer Lets kept it simple & work on the minimum 9.5% of $450 is $42.75 12 % of $450 is $54.00 So its a pay rise of $11.25 in that month.

Why have a minimum at all? Everyone has a right to save for their retirement, not just those who are able to earn $450 a month or more by the grace of others.

what about people who do not work or cannot work.. what do they get?

cods wrote on Dec 18^th, 2018 at 8:19pm:

what about people who do not work or cannot work.. what do they get?

The pension.

Bam wrote on Dec 18^th, 2018 at 8:02pm:

Why have a minimum at all? Everyone has a right to save for their retirement, not just those who are able to earn $450 a month or more by the grace of others.

Because there is a trade off between pay and super. Those on only $450/m  would undoubtedly enjoy more in the pocket.

greggerypeccary wrote on Dec 18^th, 2018 at 8:23pm:

cods wrote on Dec 18th, 2018 at 8:19pm: what about people who do not work or cannot work.. what do they get? The pension.

they dont get anything like those who actually are fortunate enough to have a JOB....with all these extras  paid every week..not everyone is unemployed by choice.

cods wrote on Dec 18^th, 2018 at 8:31pm:

greggerypeccary wrote on Dec 18th, 2018 at 8:23pm: cods wrote on Dec 18th, 2018 at 8:19pm: what about people who do not work or cannot work.. what do they get? The pension. they dont get anything like those who actually are fortunate enough to have a JOB....with all these extras  paid every week..not everyone is unemployed by choice.

Yes, I agree.

Most people aren't unemployed by choice.

Life isn't fair, though.

Here's a relevant example of how life is unfair.

I cashed in a super account last week, for $27,000.

Tomorrow, I'll probably buy one of these:

https://therockinn.com/collections/electric/products/fender-custom-shop-51-nocaster-journeyman-relic-faded-blonde-electric-guitar

https://therockinn.com/collections/electric/products/fender-custom-shop-60-stratocaster-relic-aged-fiesta-red

Or possibly both.

Meanwhile, dozens of people sleep rough on the streets right near that guitar shop, while I take home two guitars I don't need (don't even know where I'm gonna put them).

In order to make my purchase with a clear(ish) conscious, I paid $100 for a Big Issue today, on St Georges Tce.

She was very happy, which made me happy  :)