Super Fees = $32b a year
As the PM and Treasurer have said, we need to look harder at superannuation as Australia is in the first recession since super commenced in 1992.
The trade off between a super contribution and a wage increase is real. Independent groups like the Grattan Institute, the Centre for Independent Studies and ACOSS have raised concerns with the proposed increase.
RBA Governor Lowe said last week a “rise in super would certainly have negative effects on wages growth”.
Super is fundamentally a good idea but it is not working. It doesn’t get many people off the pension and it costs the federal budget more than it saves.
Each year Australians are charged more than $32 billion in super fees - more than we spend on power bills.
The vested interests in super are very strong. The unions and financial institutions want more super so they can charge higher fees. They are the main groups driving the public arguments for more super - but this is unlikely to be the best thing for workers and our economy.