Keating weighs into SG debate

The debate over the future of the superannuation guarantee has heated up with one of its founding fathers, former Prime Minister and Treasurer, Paul Keating, lambasting those who have called for either delaying the SG timetable or making superannuation voluntary for those earning less than $50,000 a year.

Keating’s comments have been reported in the Sydney Morning Herald where he has been quoted as saying the impact of holding back the increase would dwarf the impact of the Australian Labor Party policy on removing refundable franking credits.

The debate around the future of superannuation guarantee is continuing despite the Treasurer, Josh Frydenberg, making it clear that such measures are not currently on the agenda for the Government.

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However, Keating suggested that both Frydenberg and the Prime Minister, Scott Morrison, needed to rule out the superannuation guarantee being included in the terms of reference for the retirement savings review foreshadowed by the Treasurer soon after the election.

However, this has not been enough to stifle discussion within the Liberal Party or to allay concerns within the industry funds movement, with both the Australian Institute of Superannuation Trustees (AIST) and Industry Super Australia (ISA) calling on the Government to specifically rule out any such measures.

Keating is quoted as seriously questioning suggestions that delaying the SG timetable would allow employers to direct the savings to paying higher wages.

Rather, he suggested that the employers would simply “pocket all the productivity”.

 




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Paul Keating ceased to be Prime Minister 23 years ago in 1996.
Please Paul, looking in the rear vision mirror to see how great you were has been done and done and done.
It seems that anyone tinkering with his " legacy " and signature policy has no idea.
23 years have passed Paul....time to let go and allow others to determine the direction.

I know for certain my employer would pocket the lot given half the chance. We have fought long and hard through big numbers in unions to get to a 14% payment into our super. We are finally seeing growth that will support us in retirement. I don't want to rely on the pension, its just not a way to live. I do believe though people should save to invest in other things. Not just put the money all in one basket. Just another avenue as to make retirement a little easier. I see many people complaining they cannot afford to save for a house or retirement , yet they are carrying an expensive LV bag or wearing a Rolex. The new generation spend to much on rubbish. It's going to bite them all and the gov when retirement comes for gen Y... I also know many elderly who freeze at night with out a heater. Keating is one man that gets it, most 200k politicians have no clue.

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