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Let's keep $6b in the economy - a super idea.

Updated: May 26, 2020

In crisis – time to ensure future jobs by good super decisions or some $6b will be lost to the economy.

COSBOA today calls on government and all political parties to focus on jobs, not ideology and the vested interests of powerful superannuation monopolies.

Peter Strong, CEO of COSBOA, stated today “the government currently plans to increase the superannuation guarantee rate by 0.5% in July 2021. Increasing the rate of the superannuation guarantee from 9.5% to 10% would be at a cost of some $6b to all employers, including a cost of $2.8b to small businesses. This is money that is actually a wage increase for workers but one they will not see until they retire. The workers will not be able to spend that money, yet employers will need to increase prices or cut hours to account for the wage increase; all this when we know unemployment will increase. The economy needs support, not a drain on resources.”

COSBOA members know that Australia has either the highest or second highest minimum wage on the globe (depending on where you look), with an average wage that is in the top ten and a median wage in the top eight. We know that our workers enjoy some of the best conditions in the world. A wage increase for small business will often mean a cut in hours for workers or increases in prices if that is at all possible.

Mr Strong added “there is no certainty over where the investment market will head and no certainty over jobs. Aren’t we better placed ensuring the economy recovers and that jobs are maintained? This planned increase must be considered at a time when unions are also calling for a wage increase that is above inflation.”

Mr Strong added “will an unemployed person be pleased that those people with a job will get an increase in superannuation as well as a pay increase? Or would they prefer a job themselves with conditions that are already some of the best in the world? This is a crisis that needs decisions that give jobs for as many people as possible.”



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