ACCI voice concerns over $20 billion super increase

| November 28, 2011

Members of the Australian Chamber of Commerce and Industry (ACCI) have raised concerns over the decision by the House of Representatives to legislate seven increases to the employer funded superannuation levy, raising it from 9% of payroll to 12%.

Last week (24 November) twenty six representatives of the nation’s leading employer bodies signed a resolution of protest against the levy which passed the Lower House as part of Labor’s mining tax package due to the lack consultation and engagement with employers.

ACCI Chief Executive Peter Anderson said in hiding this levy rise inside the mining tax Bills, the government has denied employers due process, and the Greens and independents in the House have been complicit in that breach.

He estimated the levy increase will require an extra $20 billion per year in compulsory employer payments, once fully implemented.

“Employer representatives have always been up for a sensible discussion with government about how retirement incomes can be equitably funded. ACCI has been active in helping frame and publicly support government reforms to the superannuation industry, such as the Cooper Review and MySuper. But this levy rise is unfair and unfunded, and was specifically recommended against by the Henry Tax Review.”

“In one foul swoop, the government and the parliament has killed-off any chance of a wage-superannuation trade off to fund the levy rise to 12%. No trade union will discount wage demands for higher super once the parliament forces the business to pay.”

He noted that costs like these end up being paid by the community through weakened business profitability, less business activity and investment and fewer jobs.

Business groups also resolved to actively alert employers of these developments, and increase pressure on the government, Opposition and Greens in the lead up to next year’s Senate vote.