Ancestors

Toot

Written by Bin Chicken 🗑𓅠 on 2025-01-21 at 04:04

Is the Coalition gearing up to slash SG?

https://www.superreview.com.au/news/superannuation/coalition-gearing-slash-sg

Peter Dutton is planning to slash superannuation for Australian workers.

This is a "trial balloon" for cutting the superannuation guarantee from 11.5% (12% from July this year) down to 9%. So far, LNP RWNJs who've put their name to this dire scheme are Alex Antic, Matt Canavan, and Llew O’Brien.

If they get into power, they're going to screw your retirement.

[#]AusPol #Superannuation #PeterDutton #AlexAntic #MattCanavan #LlewOBrien.

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Descendants

Written by Moz on 2025-01-21 at 04:14

@BinChicken most 401k plans seem to allow the employer to direct the investment into the company they run, leading to people losing the lot when their employer goes bust.

When I first started working we had similar problems here, for me most obviously all the contracting arrangements where the super fund was chosen based on the size of the kickback the employer got.

[#]auspol

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Written by Bin Chicken 🗑𓅠 on 2025-01-21 at 05:11

@moz I'm unfamiliar with the 401(k) system, so won't comment on it. That said, there are some parallels with Australia's Superannuation system, and I'm very familiar with it.

I've heard of that thing happening where employers took kickbacks to send everyone's super into a dodgy investment. And, years ago it used to be that the employer could manage the investment -- which sometimes let employers put the retirement-savings of workers back into the company. Predictably, this could lead to it all disappearing due to mismanagement, company bankruptcy, or absolute fraud. As you said, if employer goes bust then the employee can be left without any savings for retirement.

Since 2005, with a few exceptions (such as people on a temporary resident visa, Defined Benefits, and some industrial awards or enterprise agreements locked-in before 2021), employers have had to let employees choose a super fund.

This cleared-up a lot of the trouble, but there's still a loophole, and I think this is relevant to what you said. If an employee doesn't say what Super Fund they want (or they're coerced or lied to by the employer), the employer can make default contributions to whatever fund they decide -- and it's easy to imagine some companies exploiting their workers like that. In 2014, the rules were changed so if no super fund is nominated by the employee, the employer has to choose from a short-list of no-fees/low-fees, no-frills MySuper investments.

Overall, my concern is: the Superannuation Guarantee was introduced in Australia by the Keating government and strengthened by Kevin Rudd and Julia Gillard, but along the way John Howard and Tony Abbott undermined SG, and Scott Morrison pushed people into raiding their Super early in the pandemic. The LNP hates Australia's super system. They want to destroy Super; it's their political dogma.

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Written by Trish Roberts on 2025-01-21 at 06:30

@BinChicken @moz @ApproachingSteed Many points to consider.

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Written by Noel Kelly on 2025-01-21 at 10:43

@BinChicken

Super is wages. That's a 3% real wage cut!

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Written by Noel Kelly on 2025-01-21 at 10:48

@BinChicken

If Labor are worth their salt, they should be able to win an election on this alone. Like Keating won in Hewson's 'unlosable election', in '93.

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Written by Bin Chicken 🗑𓅠 on 2025-01-21 at 12:10

@gnoll110 Right, this cut to workers' super is a gift to big business.

It's also setting a time-bomb for the economy: years down the track when that demographic of workers retire, they'll have less savings so be forced to spend less, which will cause an economic slow-down.

Dutton is thinking about his own ambition for power, not the long-term wellbeing of the people.

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Written by Noel Kelly on 2025-01-21 at 12:19

@BinChicken

The LNP are always chasing that money. During the last LNP government, there was a faction of LNP MPs who wanted people to access and use all their super, before people could access Centrelink for NewStart (now JobSeeker).

Much like this, most likely, they'll see how unpopular it is (with people & the Senate) and drop it before much damage is done.

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