Super Levy Debate

LINK SUPER LEVY BILLS TO PRODUCTIVITY COMMISSION AND  FAIR WORK REVIEWS, NOT MINING TAX SAY EMPLOYERS

Appearing today before the Senate Economics Committee, the Australian Chamber of Commerce and Industry (ACCI) will urge Senators to refer the proposed increase in the compulsory employer superannuation levy from 9% or payroll to 12% to the Productivity Commission, so that its impact on business and jobs can be examined in conjunction with Commission’s current inquiry into default superannuation arrangements in industrial awards.

ACCI will also urge the Senate to defer voting on the Bill until the government’s current Fair Work Review has reported, and recommend to the review panel that the Fair Work Act be amended to require arbitrated minimum wage decisions between 2013 and 2020 to implement a wage-superannuation trade off to the value of any legislated increase in mandatory employer superannuation obligations.

Speaking in Canberra, ACCI’s Chief Executive Peter Anderson said:

"It will be a gross failure of our government and political system if a law adding $20 billion of new costs is enacted and then only after the event ministers, cabinets and politicians scramble around trying to finds a way to pay for it. That hard work has got to be done now, and it still hasn’t been done by Treasury, the industrial relations system or government."

"The proposed increase in superannuation obligations on the nation’s employers is a very substantial and highly controversial new levy which has not been subject to proper analysis, costing or thought. It is not paid for by the mining tax, there is no current mechanism to provide a wages trade off, and it was recommended against by the independent Henry Tax Review."

"Employers and small businesses continue to be dismayed that such an important matter of public policy is still hidden in the mining tax, still given the misleading impression that its funded by the mining tax and still being rushed through the parliament without the usually required regulatory and cost analysis."

"Most employers are shocked to find out that the government plans to increase the levy on them without requiring unions or tribunals to discount wage claims by this amount."

"Twenty six of the nation’s leading employer representatives have signed a statement of protest against the superannuation levy Bill and the way it is being handled by the parliament."

ACCI’s submission:

Estimates the levy will cost employers and small business $20 billion a year once fully implemented;

  • Argues that lower tax and commissions on superannuation would lift retirement savings by more than the levy, without putting jobs at risk;
  • Says that putting the whole burden of the levy on employers is unbalanced and unfair, and not consistent with what other countries do;
  • Explains why unions will have no incentive to discount wage claims for superannuation if parliament says the employer must pay;
  • Calls for the superannuation levy Bills to be considered and debated separately from the Mining Tax Bills.

"Since the levy rise Bill came before the parliament, Minister Shorten has established a panel to review the Fair Work system and the Productivity Commission has started its examination of default fund arrangements in awards. These reviews trigger an opportunity to find a funding base inside the industrial relations system, an idea that should be taken up before being voted on."

ACCI’s submission to the Senate Standing Committee on Economics inquiry into the Superannuation Guarantee (Administration) Amendment Bill 2011 and mining tax Bills is at www.acci.asn.au.

ACCI’s submission to the fair Work Review is also available on the ACCI website.

For further information:
ACCI Chief Executive, Peter Anderson: 0417 264 862
ACCI Director for Workplace Relations, David Gregory: 0417 052 390
ACCI Director of Communications, David Turnbull: 0419 272 802

 

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