More super, more infrastructure and a fairer tax system are big wins for working Australians
02 May, 2010 | Media Release, News & Updates
A lift in the Superannuation Guarantee to 12% and a new government contribution to low-paid workers’ superannuation accounts are big wins for working Australians.
Together, these new measures will deliver an extra $108,000 in retirement for a 30-year-old worker earning average full-time wages. They are a major step towards making the labour movement’s dream of a more comfortable retirement for all working Australians a reality, said ACTU Secretary Jeff Lawrence.
Unions today have welcomed the centrepiece of the Federal Government’s initial response to the Henry Tax Review - a package of measures to give working people greater financial security in retirement and to secure jobs by investing in national infrastructure and make businesses more efficient.
“Using a new tax on the Super Profits of resource companies to fund a package of superannuation concessions, infrastructure investment, and to simplify business taxes makes good sense,” Mr Lawrence said. “All Australians should benefit from the resources boom – not just highly-profitable mining companies.
“It is important that the money made by selling Australia’s natural resources and the benefits of economic growth are shared equitably and we avoid the dangers of a two-speed economy.
“The profits of mining companies should be put back into physical and social infrastructure that will make the industry more efficient, more productive and more sustainable for the long-term. We also need to deliver better services to employees and their families, especially those living and working in remote areas, and invest in skills development and training to help attract and retain skilled workers to the industry.”
Unions strongly welcomed the move by the Rudd Government to lift universal superannuation contributions from the current 9% to 12% by 1 July, 2019.
“Unions have been pressing for an increase in superannuation and we are delighted to see the Rudd Government announce a clear path to achieve this goal,” Mr Lawrence said.
“The lift in the Superannuation Guarantee and the improvements to tax concessions for low-income workers are major planks that build on the deal made with working Australians and unions almost two decades ago to establish universal superannuation.
“Recent moves by the government to prevent financial planners and advisers pocketing hidden fees and commissions from workers superannuation accounts are also very welcome.
“Phasing in the Superannuation Guarantee increase over several years will ensure there is a minimal impact on workers’ take-home pay. It also means that unions will still need to play an important role in bargaining to lift the superannuation contributions up to our long-term goal of 15%.”
Unions also welcomed the Government’s announcement there will be further simplification of taxation arrangements for employees.
“Unions look forward to further action on a number of fronts proposed by the Henry Review, including positive proposals to reduce effective marginal tax rates for low and middle income workers, to close unfair tax loopholes and concessions that benefit the rich at the expense of average working Australians, and to address important recommendations on childcare, family payments and other issues for working Australians,” said Mr Lawrence.
Contact Details
Mark Phillips
Ph: 0422 009 011
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