John Hewson slams delays to super guarantee hike as 'irresponsible'   
The Age
September 28, 2020

Former Liberal Party leader John Hewson has criticised the Morrison government for failing to cut parliamentary salaries during the pandemic and instead playing populist politics with superannuation to win votes.   

Delaying the legislated superannuation guarantee rise from 9.5 per cent to 12 per cent by 2025 would be "irresponsible", Dr Hewson said during a scathing panel session at the Australian Council of Trade Unions Emergency Superannuation Summit on Monday.



The Liberal Party leader from 1990 to 1994 took aim at the government for choosing not to follow New Zealand Prime Minister Jacinda Ardern's approach of cutting parliamentary salaries during the pandemic, saying it showed "we clearly aren't all in it together" during a crisis that left up to a record one million workers unemployed.

"In particular the government has refrained from actually bearing any of the pain. They haven't cut, for example, their own salaries," he said.






"Here they are arguing to maintain a 15 per cent benefit for themselves in super when they're [potentially] denying everyone else a transition from 9.5 to 12 per cent."   

The alternative is not more wages ... the alternative is nothing at all.


Prime Minister Scott Morrison said in August the government would "carefully consider" scrapping the super guarantee rise depending on the state of the economy when the first 0.5 per cent hike is due in July 2021.

But Dr Hewson said maintaining the increase had "nothing to do with the other short-term factors that can be used as an excuse" such as the coronavirus-induced economic troubles and was a long-term reform that should be kept.

"The government is now finding any argument not to do it ... But if you step back you have to wonder whether the aim is basically not to kill off compulsory super altogether," he said, calling it indefensible and ideologically based in a simplistic view it would curry favour with the voters.

"If you want to play the electoral game, short-term populist politics, and claim expediency and tough times in a COVID recession [means] we can't afford it, that really is an irresponsible attitude."


A spokesman for Mr Morrison said there was plenty of time until the rise was due to come into effect and "Australians would rightly expect the government to wait for further data to better understand the economic environment we’re facing".

"We won't be rushed by conflicted commentators," the spokesman said. Dr Hewson is a non-executive director of Crescent Wealth, which includes an Islamic superannuation fund.

Politicians' wages are set by an independent tribunal and have been frozen, the spokesman said, adding this was in "recognition of the difficulty many Australians are facing".

Assistant Minister for Superannuation Senator Jane Hume has previously warned a rise in the guarantee would come at the expense of wage growth, citing evidence from the Grattan Institute and the Reserve Bank. She has also denied the government has any plans to get rid of super but instead wants to improve the system.

ACTU president Michele O'Neil said debates about delaying the increase generated anxiety and concern among workers who have struggled during the pandemic.

"To some in the government and big business super is the solution for every problem except retirement," Ms O'Neil said. "The alternative is not more wages ... the alternative is nothing at all."

The Labor party, superannuation funds, unions, former Labor prime ministers Paul Keating and Kevin Rudd, and former Liberal prime minister Malcolm Turnbull all support the legislated rise in the super guarantee, saying workers need the increase to ensure an adequate retirement.

The federal government has referred to a diverse group opposing the increase, including major businesses, the Australian Council of Social Service, the Reserve Bank and the Grattan Institute. About a dozen Coalition backbenchers also oppose the increase.

cods wrote on Sep 29^th, 2020 at 7:24am:


Certainly.  Piss off Hewson. 

whiteknight wrote on Sep 29^th, 2020 at 7:30am:


A few years down the track, when they've delayed (or killed off altogether) any SGC rise/s, and wages have gone nowhere, we'll have another LNP Minister telling workers that "while wages growth isn't optimal, workers who have a job, should feel lucky that they do."

Meanwhile, the "independent" remuneration tribunal will have passed a number of above inflation wage rises for the Politicians. And they'll still be getting 15.4% of Super into the bargain...

macman wrote on Sep 29^th, 2020 at 8:07am:



I have always disowned Hewson....he stuffed up BIG  he should disappear..I do think Tony was the goods....dont forget he forecast a pandemic years ago and said we should all be preparing for it.....

he also stopped the boats...

but dont give him any credit will you!

whiteknight wrote on Sep 29^th, 2020 at 8:26am:



what a GP co payment?