Senator Eric Abetz

“The Federal Treasury has today confirmed that Australian workers will have lower take home wages over coming years as a result of Labor’s proposal  to raise the superannuation guarantee from nine to twelve percent”, Senator Eric Abetz said today.

“Giving evidence to the Senate’s Economic Committee today, Treasury Secretary Ken Henry confirmed that an increase in the superannuation guarantee would be paid out of the wages of Australian workers, rather than company profits”.*

“Perhaps that’s why Dr Henry recommended against the government taking this course of action in his recent review of tax.”

“While the Coalition strongly supports retirement savings, Australian workers need to understand that lifting the compulsory superannuation rate will come at a personal cost to their future weekly wage packets,” says Senator Abetz.

“Clearly, Dr Henry’s statement today also puts the lie to the claim by Labor that the increased superannuation guarantee will be paid for by the government through revenue raised by the great big new tax on mining.”

“It is time Labor Ministers stopped spreading misinformation about who will actually pay for Labor’s superannuation proposal, and came clean with Australian workers about the negative effect it will have on their take-home pay.”

* The analysis we have seen is pretty consistent on this point that the superannuation guarantee is regarded by employers and employees as a different way of receiving an increase in wages.
- Dr Ken Henry 27h May 2010, Senate Estimates.