Stand up for Super
After a lifetime of work, all Australians deserve a comfortable retirement. For most people their superannuation will play an important part in helping them secure a modest lifestyle.
Standing up for superannuation
As a result of campaigning by unions and their members, the Labor government intends to introduce new laws that will increase the minimum superannuation from 9 per cent to 12 per cent.
The Government is also planning to reduce taxes on super for low and middle income workers and curb the commissions paid to financial planners.
For many workers these combined changes will deliver a big increase in their superannuation when they retire.
Having enough superannuation could mean the difference between living a modest life after retirement — where you watch every cent and may go without — or living a comfortable life, where you can afford a little more for you and your family.
To find out more about this campaign, please go to www.standupforsuper.com.au
Our achievements so far
Today almost every worker has the right to their own superannuation account. But that right would not exist had it not been for the campaigns fought by union members in the 1970s and 1980s.
Superannuation was deeply unfair with less than one in four women and blue-collar workers having an account. High income earners such as permanent public servants and full-time white-collar workers were more likely to have access to super.
Thanks to the campaigning and hard work of unions a system of compulsory superannuation began operating in 1992.
Unions agreed to forego a national 3% pay increase which would be put into the new superannuation system for all employees in Australia and from 1992 to 2002, the level of compulsory super (the Superannuation Guarantee) rose to 9%.
Under the Coalition government of John Howard, there was no further increase in the Superannuation Guarantee. Now the Labor government plans to gradually increase it to 12% by July 2019.
Unions also played a leading role in establishing ‘industry funds’ — these are low cost, not-for-profit superannuation funds dedicated to putting the interests of members first.
Today, almost 5 million Australian workers are members of industry funds and these funds manage hundreds of billions of dollars of workers’ contributions.
Helping union members
Unions help members make the most out of your super and savings.
Through collective bargaining unions ensure that employees have enough super and that it is paid regularly by your employer, preferably into a low-cost industry fund.
Through our association with industry funds we provide union members with financial advice and a range of benefits including low cost loans and banking services.
ME Bank was created with the support of industry super funds and unions to benefit our members. ME Bank provides an alternative to the profit-driven big banks, offering products that are fair, transparent and provide better value banking.
To find out more about our range of benefits and financial services for members, go to www.memberconnect.com.au
What’s next?
Thanks to union bargaining, about a quarter of the workforce now receive super contributions above the 9% Super Guarantee. But that’s not enough, which is why legislation to increase the minimum contribution rate for all workers is essential.
The legislation to increase the minimum contribution rate from 9 per cent to 12 per cent is expected to be introduced to Parliament by the end of 2011. However, the increase is likely to be opposed by the Coalition opposition. This means it is not certain that the legislation will be passed.
The stakes for millions of workers are high. If the rate stays at 9 per cent many workers will face a lower standard of living when they come to retire. For example, it is estimated that an average 25-year-old worker today could lose $143,000 from their super savings if the legislation is defeated.
Unions strongly support the proposed increase and will be campaigning hard to make sure it is passed.
As part of our campaigning we have a website www.standupforsuper.com.au which includes an online calculator so that workers can see how much in retirement they stand to lose without a 12 per cent contribution rate.
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