Opposition assistant treasury spokesman Mathias Cormann has sought to clarify the coalition’s position on the increase in the superannuation guarantee (SG) from 9 per cent to 12 per cent, saying that while it believed the plan was “bad policy”, it would not rescind it if elected to government in 2013.
“We don’t support the increase in compulsory super,” Senator Cormann told Investor Weekly.
“We think it’s bad policy. We think that instead of increasing compulsion the government should keep super at 9 per cent and reverse their decisions to make it harder for people to save more voluntarily.
“We have voted against Labor’s push to increase compulsory super in the House of Representatives last year and we voted against it in the Senate [last] week.”
The coalition’s position became clouded following media reports at the weekend that there was disunity within the opposition about not overturning the legislation if it is elected to government.
Coalition finance spokesman Andrew Robb is reported to have taken issue with the opposition’s commitment not to rescind the increase in the super guarantee during a frank discussion with opposition leader Tony Abbott and senior coalition figures.
Robb later told the media: “It will be $20 billion a year, $10 billion a year for small business by the time it goes to 2020.”
Cormann backed Robb’s concerns, however, reiterated that the coalition would maintain the policy to provide stability to Australian investors.
“Unlike what Labor wants to make people believe, the increase in compulsory super will not be funded by [mining magnates] Gina Rinehart and Andrew Forrest, it will be funded by workers and small businesses across the nation,” he said.
“What we have said is that if it is passed by the Parliament, we won’t rescind it in government because people need certainty around their retirement planning and we don’t think we should keep changing superannuation arrangements.”
The SG will gradualy increase from 9 per cent to 12 per cent by 2020, after the minerals resource rent tax was passed by the Senate on 19 March.
