As political tensions mount, lines are being drawn in the debate over Australia’s superannuation system. Labor stands firm in their defense of the retirement savings framework, countering critiques from the Liberal Party and One Nation, which label it a failure.
On Monday, Treasurer Jim Chalmers indicated that superannuation could emerge as a pivotal issue in the upcoming federal election.
“Facing the next election, we’re aware of the high stakes involved for various reasons, notably concerning the future of Australia’s globally recognized compulsory superannuation system,” Chalmers remarked to the press upon his arrival at Parliament House.
“The policies of the Liberals, Nationals, and One Nation threaten to dismantle our compulsory superannuation as it’s known today. Their stance would severely undermine the economic security and retirement income of countless Australian workers.
“Their shared ideology poses a perilous and divisive threat against workers and superannuation. Should it prevail post-election, Australian workers will undoubtedly face greater hardships.”
However a senior Liberal senator later sought to dispute that was the party’s ambition.
The stoush began last week when Liberal senator Andrew Bragg declared superannuation an “illiberal experiment”.
“It’s one of the biggest public policy failures since federation, in the sense that it hasn’t helped the budget, and it has not really helped many people get off the pension,” he told ABC radio on Thursday.
“What it has done is it has created a huge viper’s nest for banks and financiers and unions to pilfer, which is why what you saw at the Labor Party conference was now you’re going to have super for under 18s.”
The Association of Superannuation Funds Australia (ASFA) refuted Bragg’s comments, pointing out Australia’s age pension expenditure had decreased since the scheme was introduced in 1992.
“Super has meant that even as our population ages, the government’s Age Pension bill is going down instead of up. OECD projections have Australia at the lowest public pension spending in the OECD by the mid-2030s,” ASFA CEO Mary Delahunty said.
“Super has also meant that reliance on the Age Pension has fallen, with 12 per cent fewer over-65s receiving a part or full Age Pension today than in 2012. This will keep falling as we see the effects of higher super guarantees coming in.
“A lower reliance on the Age Pension is a massive public policy success.”
Under the current system, all Australian employers are required to pay a minimum 12 per cent of an employee’s salary into a nominated super fund, which cannot be accessed until a person is 60.
Chalmers ‘making things up’: Hume
Deputy Opposition leader Jane Hume said the Liberals would not make any changes to compulsory super, saying the treasurer was “simply making things up”.
“I think the treasurer has taken a leaf out of the Mad Men Don Draper book; if you don’t like what they’re saying about you, change the conversation. Can I make it very clear: the super guarantee is here to stay,” she told reporters in Canberra.
Hume said the Coalition would consider adopting an early super access policy, telling News24 economic security in retirement hinged on home ownership, rather than a person’s superannuation balance.
The Coalition has taken a “super for housing” policy to the last two elections, which would allow first-home buyers to withdraw up to $50,000 to buy a property.
On Sunday, One Nation leader Pauline Hanson waded into the debate, labelling Australia’s superannuation scheme “broken” and suggesting financially struggling Australians should be able to access super early.
“A lot of Australians are doing it tough now and struggling to pay off their mortgages,” she told News24 on Sunday, adding the policy proposal was yet to be finalised.
“In some ways, I feel that you should give them their money now, and let them help them with the cost of living.”
Hanson’s deputy, Barnaby Joyce, backed those calls, telling Seven that the current rules only allowed early access in extremely limited circumstances, such as medical treatment.
“I think one of the hardships people have is if they can’t feed themselves. And another hardship is if they don’t have a house and they’re put out on the street and they’re living in a car,” he said on Monday.
“Surely it’s their money and we should give a little more respect about what they can do with their own money.”
Labor’s assistant minister for housing, Julian Hill, said accessing super early to pay for housing deserves “a gold medal for the stupidest policy”.