ACCI Protest

Twenty six representatives of the nation’s leading employer bodies, meeting as the General Council of the Australian Chamber of Commerce and Industry, today took the exceptional step of signing a resolution of protest at the decision yesterday by the House of Representatives to legislate seven increases to the employer funded superannuation levy, raising it from 9% of payroll to 12%.

Employer representatives from both Chambers of Commerce and national Industry Associations expressed alarm that a majority of lower House MPs had chosen to impose this levy on private businesses under the guise of debate on the mining tax, when in fact the levy was not funded from mining tax revenues. Representatives were also appalled at the lack of engagement with employers on the issue.
 
"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" said ACCI Chief Executive Peter Anderson.
 
ACCI estimates 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."
 
"Costs like these end up being paid by the community through weakened business profitability, less business activity and investment and fewer jobs."
 
Click here to access the resolution of ACCI General Council, comprising Presidents and Chief Executives of major business groups.
 
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.
 
ACCI General Council was also addressed today by new ACCC Chairman, Rod Sims.
 
For further information:
 
ACCI’s Chief Executive, Peter Anderson: 
0417 264 862
 
ACCI’s communications Director, David Turnbull: 
0419 272 802
 
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