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.
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”.