Take home pay or put it in super: Government considers opt-in super model

Take home pay or put it in super: Government considers opt-in super model | @JennieDuke @JennieDuke

12/01/2021 10:58:00 PM

Take home pay or put it in super: Government considers opt-in super model | JennieDuke JennieDuke

Workers could be able to choose to take home more pay or put it into superannuation as part of a proposal the federal government is considering ahead of a coming rise in the super guarantee.

Normal text sizeLarger text sizeVery large text sizeThe federal government is considering giving workers the choice of putting more money into their superannuation or having more take-home pay in an attempt to break a political deadlock ahead of a looming rise in the super guarantee.

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The plan, which has not gone to cabinet and is part of a range of possible reforms being examined by the government, would trigger a battle with Labor, the unions and the $3 trillion industry superannuation fund sector who argue increases above the current 9.5 per cent guarantee are necessary for workers to have an adequate retirement.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg will consider a proposal for opt-in superannuation increases.Credit:Alex EllinghausenIncreasing the super guarantee to 12 per cent was a coalition election commitment and Labor is prepared to campaign fiercely if the government changes its mind. But with some Coalition MPs pushing for no increase in the super guarantee and economists concerned the rise will headtopics.com

affect the nation's economic recovery during the coronavirus pandemic, the Morrison government is looking for fresh ways to manoeuvre on the promise.The 9.5 per cent guarantee is scheduled to rise to 12 per cent in 2025, delivering an extra $20 billion into earners' retirement accounts with the first 0.5 percentage point hike in the super guarantee legislated to kick in from July. However, a new model being considered for the nation's superannuation system could see workers given the choice about whether to put more of their money into super.

AdvertisementThe idea is one of several options multiple government sources confirmed were in the early stages of being actively discussed and may form a type of "opt in" arrangement for workers. Details about the mechanisms are still being worked on and there has not been any economic modelling on the scheme. But the plan could involve letting the super guarantee rise to 10 per cent and making the final 2 per cent optional.

LoadingThe sources said many options were being scrutinised and changing the legislation would be politically difficult especially in the lead up to a federal election. Those involved with the proposal say it is complemented by a wide-ranging review into the retirement income sector led by former Treasury deputy secretary Mike Callaghan and released in late-2020.

The Callaghan report found a more efficient use of savings at the current guarantee rate would do more for people's lifestyles in retirement than hiking the guarantee. "Using superannuation assets more efficiently and accessing equity in the home can significantly boost retirement incomes without the need for additional contributions," the report said. headtopics.com

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Labor has repeatedly claimed the Morrison government wants to undermine superannuation and destroy compulsory retirement savings. The federal government has disputed these claims, saying its aim is to improve the system not dismantle it, but has been concerned about the possibility of a "scare campaign" on super with the financial support of the industry super funds.

Read more: The Sydney Morning Herald »

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JennieDuke What an administrative mess that will be for small business to sort out for each employee when paying it, errors are likely to be made with the best of intentions. It can be complicated enough to do now! Not all businesses have a dedicated HR or payroll department. JennieDuke These silver spoon - pension for life - tossers are not representing most of us. We must STOP electing people who don't reflect our wishes.

JennieDuke Another point of IPA's 75 point plan. LNP already implemented many. SMH, you would be asking the question. You are now a mouth piece for the LNP. Shifted more after takeover. Your fairness left. Reason I stopped my subscription. AuspolSoCorrupt JennieDuke We will opt-out at the next federal election

JennieDuke Thank god my 92 year old dad in residential care has super or he'd be f'ed now. Tweeting this for him, because he can't express himself now. JennieDuke Dreadful idea. Why do the Liberals think super is only for rich people? JennieDuke JennieDuke just because it wasn't their idea... JennieDuke Don't want super, no aged pension.

JennieDuke This is an astonishingly bad idea, driven by nothing more than IPA ideology run amok. JennieDuke So glad I salary sacrificed into my industry super over many years so I have a dignified retirement. Friends applying for the aged pension tell me the process is torturous, intrusive and undignified. The future w/o super will be bleak for many.

JennieDuke Can’t even get paid hahah they steal JennieDuke They want to say that this will represent wage growth, if you want it, or have funds to live on when you retire. The pension will be next to nothing in the future. JennieDuke Opt out tax works for me - do these geezers have any idea? JennieDuke Just wondering, how is Politicians super/pension worked out? From the public purse no doubt? How about we scrap political pensions and they go onto the age pension like everybody else? Anyone willing to write an article on the double standard that is political entitlement?

JennieDuke While their bosses benefit from staff getting JobKeeper ...it's been a massive bonus for them. JennieDuke This is total garbage JennieDuke This would ruin me ScottMorrisonMP JennieDuke There is no way that the employers will continue paying the equivalent of 9% on top of existing wages. They'll just reduce staff or reduce wages. I'm sure workers rights will be further eroded and the minimum wage will be reduced.

JennieDuke The LNP and Murdoch want a return to the super rich and super poor. They want haves and have nots. Not everyone on a equal footing, which is achievable these days. Tax the crazy rich and look after the less fortunate! JennieDuke Why do they want a worse Australia? 🇦🇺 JennieDuke Let’s look at the data.

JennieDuke Okay then make the increase in take home pay tax free as an option JennieDuke This is dangerous. So our children will be taxed heavily when everyone goes on the pension when they retire. Dumb idea. JennieDuke So I'm guessing death is now the preferred retirement plan for us. JennieDuke It is LiberalAus/The_Nationals official policy to push poor and disadvantaged Australians deeper into poverty. ScottMorrisonMP and his Govt will not be satisfied until all the 'undeserving' (ie not rich) Australians starve to death. auspol corruption evil scomo traitor

JennieDuke This will basically lead to a lot of people paying more tax. Nice one. JennieDuke Scott Morrison wants superannuation $1 trillion savings to be moved to future fund, so that he can access super savings for infrastructure like gas. He tried to access through Greg Combet who resigned from Morrison’s Covid Committee. I’d like to hear Combet’s reasons.

JennieDuke At a meeting before the 2019 the Liberal Party agreed with the Chamber I & C, Miners, Small Business to remove the IR system and introduce the American minimalist system. Opt out of super, no LSL, penalty rates. Overtime 1 1/2 after extra 5 hours worked, 5 days sick leave etc. JennieDuke Works both ways. Nothing to stop people spending less on the economy so as to put savings into their super. If businesses don't support pay rises and super why should people spend and give their hard earned money to business?

The LNP want to destroy Super. They are too ideologically stupid to see the insanity of that. JennieDuke Is the 9.5% getting taxed at super rates? Probably not, this govt is sneaky JennieDuke Seems like a silly idea that will add further complexity to payroll for small businesses. As a bus. owner am happy for Govt to increase SGC to 12% but this option seems rubbish.

JennieDuke Ive seen this government come up with some dumb ideas, but this thought bubble really does prove these numpties are barren of any policies that actually help ordinary Australians. They need a few decades in the political wilderness. JennieDuke I thought the whole point of mandatory super was to reduce the blow of a pension?

JennieDuke So increased funding for old age pensions then? JennieDuke Support superannuation as there will be no pension upon retirement from LNP. JennieDuke This is bs how about opt in super for politicians if we are going to make this fair, I bet not wake up Australia you are being taken for a ride

JennieDuke Another way to short change Aussies. This bloke is a prick. JennieDuke No no no . More take home pay, more tax, less retirement fund. Don’t be conned, compulsory super contribution protects you from poverty because the aged pension sure doesn’t. JennieDuke Makes a lot of sense to me. Means you can save for a house before 30 by taking the 9.5% as you go, and then whack it in Super post 30 for retirement.

JennieDuke This is criminal. JennieDuke So wish you would add super into Oceana that will build import and exports, farms and factories cause they need food, Our eggs in more baskets much safer. Mars Race is on JennieDuke That's because they are thieves. JennieDuke Do not let these myopic economists LOL destroy the prosperity of all Australians. Those who think this is a good idea are exactly those who wouldn't save on their own behalf.

JennieDuke JennieDuke ScottMorrisonMP & AusLiberalParty using COVID as excuse to bloke legislated superannuation increases. They have always opposed compulsory super and now they want to steal our super again. For Fair economic recovery we need increased wages and super. unionsaustralia JennieDuke They really are dim... this has the potential to collapse the super/banking system. But smart punters will continue on contributing - hopefully to their industry super funds...

JennieDuke There should be a tax subsidy fit people who have not had access to super for all of their working lives. The last 5 years of work all your tax goes to your super JennieDuke You are right Denise sounds like a squeeze both ways while trying to appear pro choice. What when wages drop further . Is this being done to benefit employers who can then pay less overall. Would the pm give up his super. I doubt it. Grrrrrrrrr

JennieDuke This is insane. Morrison said don't rely on the pension & now no super? People will be working until they die. We become more like the US each day. JennieDuke The LNP are determined to destroy the Super system aren't they - and of course Morrison has told us the Age Pension is welfare and can't be taken for granted ... what utter mongrels they are

northway_debbie JennieDuke Noooo. Many poor folks have already cleaned out their Super! 😩🤬 JennieDuke These f*ckers are relentless aren't they? JennieDuke You kidding me? Choose to be poor now or when you’re old? JennieDuke Wreckers. JennieDuke Both JennieDuke Utter hypocrisy, politicians receive 15.4% super and have enjoyed pay rises. Workers guaranteed super increases have stalled since Abbott and wage growth has been lowest in history.

JennieDuke No. No. No. JennieDuke Married couples should share one super account JennieDuke So no super, no age pension. So a new range of Work Houses will be built by Lib donors to take the old & decrepid who can't work anymore ( Dave Sharma will take shares in them) JennieDuke Do these politicians think we are THAT stupid, no way would I put in super, it's just another rort by a government that tries to rip off working people. If they think this is going to win them more votes at the next election they are mistaken.

JennieDuke Are they also considering an old age pension guarantee? 3 terms is too long. They need to go before they completely stuff our quality of life. These idiots can only mimick the US....and we see how that’s going. JennieDuke thats insane.. let them take it home and then have nada when it comes to retiring and again relying solely on an age pension that might not be there or enough to survive on.

JennieDuke This is bad economics. It would result in poverty for millions. The only ‘advanced’ country that does this is the USA, a complete catastrophe of a society. All so a few greedy men can get richer JennieDuke Yep and here it is fund your own pay rises with your own money. What wonderful frucked idea? From the IPA!

JennieDuke A ploy to avoid raising wages while employers can argue staff can access Super to raise 'income' at no extra cost to employers. This sets the foundation for increasing poverty for older Australians, much better to address systemic income and wealth inequality. JennieDuke These pigs won't stop until they have ruined the super model. Hiding behind a false 'pay rise' which will make millions dependent on welfare in retirement.

JennieDuke Geez, lets just get rid of this horrid government. JennieDuke And who will provide for the elderly when you get rid of pensions? Ah. Who cares eh? Same as your thoughts about aged care already. JennieDuke In this post Trump era I thought we might get a bit more truth in the media. It's not super or pay, it's super or nothing. The article says nothing about a choice. The article simply outlines the government's options for reneging on a promise and how they might get away with it.

JennieDuke How about both ?..........good super for retirement and better pay and conditions.......fight for both !!!! JennieDuke So they are going to try and use people’s super to cover up for a massive lack of wage growth in the economy ? JennieDuke Nobody seems to realise that apart from the obvious problem of having no super at retirement, if you opted for the employer contributions as a pay rise instead, you'd lose a third or more of it in tax. This is the sneaky bit the LNP AREN'T telling you. LNPcorruption

JennieDuke JennieDuke ‘s article contains real reasons why Scotty hates the Super rise: 1. Tax Super contribs are taxed lower than income. The ‘low tax party’ wants to increase tax receipts. 2. Hates Ind Super ethics (coz Scotty’s party has none) 3. Backers don’t want to pay increase JennieDuke Minor raise now with long term poverty later? no thanks.

JennieDuke At the same time Morrison is telling us not to rely on pensions in the future. So if no super...what will people live on when they retire? Tell us ScottMorrisonMP JoshFrydenberg auspol MSM JennieDuke They can come up with this ideology but they can't do ICAC...😅 Scotty from marketing is nothing more than a Trump like domestic terrorist Leave Superannuation alone .. auspol abcnews GladysMustGo sunriseon7 TheProjectTV

JennieDuke Pollies voted themselves 15% super years ago. If they were genuine they’d take all future pay rises by reducing their super, until it was back down to current compulsory level. Tim Wilson & Senator Hume included. Lead by example guys. JennieDuke When I was 19 the last thing on my mind was my retirement income. If I had the choice I would have opted out and would now, at the age of 66, be significantly poorer.

JennieDuke The corrupt LNP war on super and the poor continues. JennieDuke Us peasants need to be more grateful we’re not being paid with gruel. In fact, LNP economists have calculated gratefulness to be a whopping 3% which covers the promised super rise. JennieDuke So win some votes by the BS of a little bit more take home pay Saddle some future govt with exorbitant senior support great plan Sorry but I'll keep telling my kids to slam as much money into super as they can

JennieDuke Just stop super funds charging us fees! That’s a bloody crime. Stealing the money we worked for. Super doesn’t work well for everyone. I’d rather save it into my savings account. JennieDuke The Coalition are criminals and liars. Never trust them, JennieDuke If the pollies were on the same super scheme as the rest of us they would not be discussing this at all.

JennieDuke ‘Cause that shit’s working reeeeeaal well for Americans 401K JennieDuke Madness JennieDuke postponing the problem of Aging and retirement 🤬 JennieDuke HANDS OFF OUR SUPER! JennieDuke So - I save for my retirement with super. I also then have to pay mega taxes in the future so people can survive on a pension in 40 years. All so the LNP can wrest control of the massive wealth from within industry super - because they despise anyone having power who is not them.

JennieDuke We already have this option - it's called salary sacrifice. JennieDuke FFS. Those fucking turds!!! Do they sit in their offices planning how to inflict more misery?! That is all this will do, obviously. JennieDuke The weapon has been chosen. JennieDuke So just a re-cap. Business people don't want to pay it and fuck the workers. Done.

JennieDuke LNP are like a relentless army of Sith Lords trying to destroy Superannuation. the evil is strong in them. auspol JennieDuke More travel money for young people? JennieDuke People need to see this for what it is . Another attack on workers by an LNP Government JennieDuke Now that’s nuts. JennieDuke Here we go again this corrupt government cannot bear working class people having access to super. Its only for the wealthy. For the first time in their lives workers have a chance to finish with something from a lifetime of work making the rich richer. Absolutely telling.

JennieDuke Altering super in any way (besides increasing it) will fuck millions of people out of well-earned retirement. JennieDuke We will end up with more poverty, homelessness, distress... Then they will cut wages so there won't be any savings. The people hit the most will be across all age brackets, especially older Australians due to no pension. We'll be worse than the US.

JennieDuke cancelfairfax JennieDuke Rubbish idea in a rubbish paper... JennieDuke Unfortunately a future government will be forced to pay pensions at a far earlier age, particularly to women, because of this idiocy. The superannuation scheme was intended to deal with a vastly larger aging population. Just at the time that increase occurs, these idiots cut it.

JennieDuke This will give a lot of selling power to advisers. JennieDuke Why is the govt so determined to destroy the superannuation system? Do they really hate the success of industry super funds that much ? JennieDuke The conservatives have had an agenda against super for decades. They particularly hate industry super. The conservatives are without a moral compass. We must treat them with suspicion. LNP auspol LiberalAus

JennieDuke auspol COTAAustralia DawsonEJ JaneCaro EVERALDATLARGE The nett result would be a shift to retirement incomes based on voluntary savings & a welfare-net age pension (the Coalition/IPA agenda). Millions of Australian retirees would live in poverty or near-poverty for decades JennieDuke Flat earthers the lot of them who voted these crack pots in?

JennieDuke Alternative headline: Government lies and weakens our future. JennieDuke No, no, no, no, no JennieDuke I would prefer to read about the opportunities that exist for retirees to live without super and without an Aged pension which is also Liberal party Policy. This is sloppy reporting on sloppy policy.

JennieDuke Whats the catch. Age pension going up to 75 years of age so less liability on the government. Shouldn't it be the opposite. More money into super to fund retirement. There has to be a catch. JennieDuke And anyone surveyed employer groups to see if they would give 9.5% or 12% pay rises if you opt out?

JennieDuke The Morrison Regime is just like every other version of the Libs since super was introduced by Labor. JennieDuke Should read: Government considers ways to increase and entrench poverty to further benefit billionaires. JennieDuke This piece reads like PR for the federal government JennieDuke Can we do the same with tax?

JennieDuke Nooo... JennieDuke Money for the banks? We got it. Money for Corporate companies we got it. Pay rise Josh? We got it. For those who lost everything due to the pandemic, have no home a year after the catastrophic bush fires Scott Morrison found it annoying to deal with? Make them use their super.

JennieDuke So, workers can pay for their own pay rise and we get to pass the cost of future retirees on to future generations. Sounds about right, does it, JoshFrydenberg? JennieDuke LNP super policy: 1) Hate it because ALP built it. 2) Always try wreck it whenever in Govt. 3) Ignore national long term retirement security for workers. Not in their core values. 4) Always try to undermine public support. 5) Wave around mythical fistful of $ as ‘choice.’

JennieDuke And then they will announce that the aged pension is no more. Morrison is on the record saying as much when he was a Minister. JennieDuke Equals more pensioners living in poverty. Which Liberal donors benefit from this scheme I wonder. JennieDuke This is because the pension will soon be over watch

JennieDuke Compulsory super was introduced so people wouldn’t be on the aged pension as it would bankrupt the Government. Devised by forward thinking people which is obviously not the current lot. JennieDuke They really are relentless with their attacks on a highly functional and beneficial system in Australia. This would enable lower wages, result in less Australian ownership of companies via the stock market and higher Government pension requirements. Costly and anti-Australian.

JennieDuke Scotty looks like he shat himself, which is equivalent of his opt in super model JennieDuke Disgusting! JennieDuke It is costing 30 billion a year in fees to manage Australian super which is more than what the government pays in aged pension payments JennieDuke Typical ******* conservatives

JennieDuke Lnp wage suppression for 20 years and now opt out of super.Tony Abbott is a fool, P.keating is a sooth sayer. JennieDuke The Federal Government is trying to destroy superannuation Who will pay for our retirement JennieDuke How about an opt out super model! JennieDuke 'Government determined to kill superannuation' Maybe they could start by cancelling their own.

JennieDuke Terrible idea. Australia through the hard work of previous years has done so well maintaining our Superannuation buffer.