There is a debate going on in Australia at the moment about superannuation. In particular, the percentage of superannuation payments that companies must make for each employee.
Currently, the law says that 9.5% of the base salary is the minimum requirement.
Some companies go with more than that in order to provide attractive remuneration for staff. For example, the university sector has very generous superannuation levels well into double figures. But overall, weak investment returns and stock market volatility will leave many workers with modest super at retirement.
In response to this future problem, the Federal government promised to raise the minimum rate of employer superannuation contribution to 12%.
This has benefits to workers but also to the economy as a whole when those workers become retirees and have more money to spend.
Only the Australian PM Scott Morrison is considering delaying the legislated increase from 9.5 per cent to 12 per cent… to protect jobs.
It is a boon for politicians to stand up and say “isn’t it wonderful that we are trying to improve the superannuation rate”. Even if they then say that they will delay it to protect jobs in tough times.
When the PM or any of his ministers stands up to speak though, he probably doesn’t tell everybody that his superannuation as a member of Parliament is already 15%.
Imagine standing up and saying well, ladies and gentlemen, I get 15 per cent you get nine and a bit, but we’re going to raise yours a little bit or maybe not now that COVID-19 has stuffed everything up.
That is really not going to go down too well – one rule for you and one rule for me.