The lowest paid workers will lose out under the Henry Review superannuation changes, with employers forced to cut wages to pay the increased superannuation rate.
The increase in compulsory superannuation payments, from 9 to 12 percent, will cost small business $26.6 billion claims the Liberal Party, with those costs unable to be worn by business alone.
Australian Chamber of Commerce and Industry chief executive Peter Anderson says business will be unable to foot the additional superannuation bill mandated by Kevin Rudd’s Henry Review response, despite the cut in company tax rates, which will force employees to either take a wage cut, or lose their jobs.
“Either it will be part of a wages trade-off, in other words low-paid workers end up paying for their future superannuation by today taking a wage cut,” he said.
“Or the business has to foot the bill – in which case the business takes an economic hit and that puts pressure on jobs.”
Liberal MP Bruce Billson contends that more than 640,000 small businesses will be slugged with an additional tax on their payroll thanks to the government’s increase in the superannuation guarantee.
“What the government has given with a two percentage point reduction in corporate taxes it has more than taken back with a three percentage point increase in the superannuation guarantee.” He said in a statement.
The ACTU rallied against the ACCI, arguing employers were putting profits before people.
“Their resistance to the Government’s decision is based on a desire to maximise profits at the expense of an adequate retirement for the workers who generate their wealth,” said ACTU secretary Jeff Lawrence.
“The pathway to a 12 per cent superannuation guarantee is a big win for Australian workers and a big win for Australian unions,” Mr Lawrence told reporters in Canberra on Sunday.
“When I’ve looked at what working people are supposed to retire on to give them comfort and security in their retirement years, right now it’s just not enough,” Prime Minister Kevin Rudd said yesterday addressing a Labour Day march in Brisbane yesterday.
