The government is considering the possibilities of allowing low-income individuals to opt out of compulsory superannuation. Labor finds it “disturbing.”
“This is a despicable attack on the very foundations of a decent retirement for working Australians,” News Corp quoted Labor’s superannuation spokesman Jim Chalmers as telling reporters in Brisbane on Sunday.
“The Liberal Party has never believed in compulsory superannuation and … already they’ve frozen the superannuation guarantee, they’re abolishing the low-income super contribution and these revelations today show that they plan to go even further.”
According to the Herald Sun, the low-income individuals will be financially benefitted if they can opt out of the compulsory superannuation. There may be a pay rise of up to $63 a week. Casual and part-time workers, who earn less than $37,000 a year, are likely to get a 9.5 percent pay rise.
According to Deputy Prime Minister Barnaby Joyce, low-income workers are quite likely to get the pension. “By the time of retirement … they receive the pension and own the house they are in,” he told Sky News. “They are in a better position than most.”
Treasurer Scott Morrison was criticised last week for not giving out any details while giving a long speech about tax reform. He got support from Deputy Liberal Leader Julie Bishop, who defended his approach.
Joyce also said the government would advise workers to save for their retirement, if they could. He said the government had to reduce its expenditure, so it would help.
“We obviously want those who can save to save, and not rely on the pension, because … we’ve got to reduce our expenditure and one of those expenditures, one of the biggest ones when you get your [tax] receipt is welfare payments,” Joyce said.
Complete details about the Turnbull government’s Superannuation program can be found HERE.