Shadow Treasurer Angus Taylor wants to Americanise Australia’s superannuation system.
Taylor stated the Coalition’s ambitions include “aligning superannuation with other global retirement schemes like [America’s] 401k” during a recent speech at the University of Sydney.
America’s 401k is an opt-in system where funds are not compulsorily preserved for retirement.
Workers in these schemes often face high fees, low returns and, in shameful cases, employer misuse of their funds.
In stark contrast, Australia’s broad-based, compulsory superannuation system is considered a world leader.
Super Members Council CEO Misha Schubert told Investment Magazine any policy that undermines key principles of super – compulsion, preservation and universality – would make Australians poorer in retirement.
“Leading US financiers like Blackrock’s Larry Fink and countless other global experts envy Australia’s system for a compelling reason: it enables a dignified retirement for all Australian workers – not just the wealthy,” Schubert said.
The Australian Council of Trade Unions (ACTU) condemned Taylor’s comments, warning the policy ambition would effectively dismantle superannuation.
“…the Coalition’s dream of dismantling super is alive and well,” the ACTU said.
Unions built super and are ready to defend it
IEU-QNT Branch Secretary Terry Burke said the success of superannuation had long-rankled some conservative politicians who resent workers having a stake in their own futures.
“Superannuation exists because union members fought for it,” Mr Burke said.
“Unions brokered a landmark accord with the Hawke government in 1986, which laid the foundations for the superannuation system we know today.
“It was a groundbreaking reform that provided workers with a real stake in their financial futures.
“Now, nearly 40 years later, generations of Australian workers enjoy real hope for their retirement,” he said.
Mr Burke said the latest comments by Taylor underscore an ongoing Coalition campaign to undermine the system.
“Rather than address housing pressures directly, the Coalition wants workers to use their superannuation to fund housing deposits,” he said.
“When they were previously in government, the Coalition froze legislated increases to the superannuation guarantee (SG), denying workers thousands in lost superannuation.
“With this track record, it’s clear superannuation is a key battleground – and unions are ready for the fight.
“Every worker deserves a secure retirement, despite what the Angus Taylors of the world may think,” Mr Burke said.
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