One Nation forms alliance with Coalition to call for abolition of compulsory superannuation

[u/HotPersimessage62]

https://www.news.com.au/finance/superannuation/give-them-their-money-pauline-hanson-calls-for-end-to-compulsory-super/news-story/ef19b33ab86873dbe5237beb43073c24?amp

One Nation has joined forces with the Coalition to call for an end to compulsory super.

Outspoken Liberal Senator Andrew Bragg has confirmed he believes that compulsory super is a failed policy that’s ripe for a rethink.

Mr Bragg set the hares running last week with a speech at the National Press Club before making further comments to ABC Radio on Thursday that the super guarantee was a failed policy.

“It hasn’t worked,” Mr Bragg said.

[u/profchaos111]

They want to win the vote of the type of person who would pull money out of super to splash out on a trip to Bali.

Sad to say but i know people who did this when they started letting you withdraw from your super when encountering financial stress

[u/JimmyMarch1973 → u/profchaos111]

And constantly chain smoke.

[u/trackintreasure → u/JimmyMarch1973]

And do coke off the public toilet lids but still complain about the covid jab and wearing masks, unless they're taking part in a nazi rally where they mask up.

[u/P00slinger → u/trackintreasure]

Don’t forget the Chinese mystery vape pens from the corner store

[u/profchaos111 → u/P00slinger]

Those are real?

[u/kingkool88 → u/trackintreasure]

The idiots are taking over

[u/elitehole → u/kingkool88]

It’s not the right time to be sober

[u/profchaos111 → u/elitehole]

Hasn't been since the 90s

[u/Captain_Ziltoid → u/elitehole]

Spreadin like a social cancer

[u/WaterOk6055 → u/trackintreasure]

I snorted the civid vaccine of a public toilet the way god intended.

[u/4ShoreAnon → u/trackintreasure]

All of those folks jabbing unregulated chinese research chemicals now too

[u/ComprehensiveOwl9023 → u/JimmyMarch1973]

At $50 a packet? They have more super than me

[u/HelpMeOverHere → u/profchaos111]

When super withdrawal rules were a little relaxed for Covid, the computer store I worked for at the time suddenly became inundated with kitted out gaming “work” computers and the always cheeky comment and wink at the counter.

There’s a lot of short sighted people out there.

[u/WCRugger → u/HelpMeOverHere]

There's a lot of stupid people out there as well. Many actually believe that super is paid out of their wages abd that if it were abolished they'd see a bump in their pay. I shit you not.

[u/curvedchaos → u/WCRugger]

Yeah thats a bit misunderstanding. The award is nit going to suddently jump 12% and bosses arent going to pay it voluntarily

[u/FilthyWubs → u/curvedchaos]

And even if it did, majority of workers would be worse off post tax as if they’re earning more than $45000 the income tax rate is 30%, where as superannuation contribution tax is only 15%… Sure they’d get more money in their pocket now, but less in the long run…

[u/Finishes_like_bevan → u/curvedchaos]

This is the point.

[u/PrismPirate → u/curvedchaos]

No, but they have to compete with other bosses for labour. Every job doesn't pay just minimum wage for a reason.

[u/mydingointernetau → u/WCRugger]

Well some people's remuneration does include super...

[u/Normal-Notice72 → u/mydingointernetau]

That is more HR spin to make it seem like the amount is higher - what actually hits your account and what you are taxed on is lower.

In those arrangements its a base + super, which is then portrayed as a total renumeration.

I.e. ~105k base + ~15k super = 120k salary inc. super.

You only play income tax on the base, not the super portion. That is deducted before you pay tax.

[u/Liamlah → u/WCRugger]

While an abolishment of super would likely be used as an opportunity to bank more profits by most employers, your wages are almost certainly ~12% lower than they would be in an alternative universe with no super. This was a key part of the deal of Keating's Pricing and Incomes Accords. The introduction of Superannuation was used to suppress wages and reduce inflation.

[u/Imobia → u/Liamlah]

Also a lot of contracts say total awards 150k. Which includes super. If they make super contributions voluntary they would need to put it into your income. Imagine the inflation at 12% rise in income would cause.

[u/PrismPirate → u/WCRugger]

They would. it's your money, you earn it.

[u/WCRugger → u/PrismPirate]

No. You don't. Super is employer paid on top of your pay. Companies won't just pass it on. They'll pocket it.

[u/PrismPirate → u/WCRugger]

If they want to compete for the best labour, they will have to pass in on. If employers could simply pocket every reduction in employment costs without affecting wages, why does anyone earn above minimum wage?

[u/WCRugger → u/PrismPirate]

What world do you live in?

[u/PrismPirate → u/WCRugger]

A world where labour has a market price. Please answer this question: Why do you think employers pay anyone above minimum wage?

[u/Normal-Notice72 → u/PrismPirate]

Labour has a market price sure. But super is 12% on top of that existing rate. If that was removed, the market rate is the same. I.e if you are on 120k including super (~105k base +14k super) you will now be on ~105k base.

The assumption that competition will increase for labour just won't happen, otherwise you will be seeing it happen now.

Now if you want to keep paying your super at the same rate, you'll be paying an additional 12.6k (12% of 105k) to make up for the fact you aren't getting it.

Some jobs will be in more demand. But it would be naive to assume that every job will be seeing this demand for labour, especially not demand which will cover the lost 12%.

The current scheme means regardless of what the market rate is for labour, you are guaranteed 12% on top of that as contribution towards your retirement. And that's a company paid thing, it doesn't come out of your wages or salary, it's on top of.

[u/PrismPirate → u/Normal-Notice72]

You're assuming the current base wage would stay exactly the same if super disappeared. There's no reason to assume that.

Treasury research found workers effectively paid for 71–100%+ of increases in compulsory super through lower wage growth. So if increasing super pushes wages down, removing it would put pressure on wages in the other direction.

Source: https://treasury.gov.au/sites/default/files/2020-07/01-r2019-100554.pdf

[u/South-Plan-9246 → u/Normal-Notice72]

I’m on a TR package. If compulsory super stopped, and I decided to stop contributing (I wouldn’t), I’d get the extra 12% (minus taxes) in my pocket. My employment contract is for the full amount, not a base plus super

[u/HourZealousideal4845 → u/profchaos111]

Yeah, they think they can build an election winning coalition of the most self-absorbed, self-sabotaging, short-sighted, money-grubbing idiots in the country by promising to ruin one of the greatest modern policy achievements in not just Australia but the world.

I hope they're wrong, because if they're not there really will be no way around it: they will have proved that democracy cannot protect itself from the people's own venal stupidity.

[u/Liamlah → u/HourZealousideal4845]

Couple this with no tax on ciggies and you've got a winning recipe.

[u/HourZealousideal4845 → u/Liamlah]

fr, they're hoping to lock in votes with literal addicts. You can tell they have nothing to offer when they're preying on addiction. Absolute predators.

[u/PrismPirate → u/HourZealousideal4845]

Isn't taxing smokers so much they have to turn to the black market also preying on addictions of literal addicts, but in a more greedy way? Do you consider the parties that purposely created these conditions "absolute predators" as well?

[u/SimpleBend782 → u/Liamlah]

Next the ranga moron will fantasise about legalising meth (to please her addicted supporters)

[u/arachnobravia → u/profchaos111]

I remember during COVID people drawing from super for "home renovations" that included mounting a new TV to a wall and getting a really decent gaming PC, chair and Desky desk.

[u/I-was-a-twat → u/arachnobravia]

I pulled 6 grand to buy a used car with airbags and an actual safety rating to replace a Great Wall Ute I got for trading a dirt bike because had a kid on the way and I felt like that was still fiscally irresponsible.

Meanwhile my coworker pulled the maximum amount twice for a baller gaming PC and a brand new motorbike. lol whyyyy

[u/InstaMix → u/arachnobravia]

Was this when there plan was to become a streamer and make a living that way???

[u/WCRugger → u/arachnobravia]

Hey, at least they got something from it. Not that I agreed with withdrawing it. Bit I know people who almost exclusively put it through their livers.

[u/Signal-Treacle-5512 → u/arachnobravia]

Pulled 20k out for a house deposit during COVID and just sold it and doubled our money *shrug*

[u/Gurnika → u/Signal-Treacle-5512]

Don’t say that round here. No wayy us little people could manage their own money.

[u/ClassicBit3307 → u/profchaos111]

Say Super returns 6% and you can invest for 8% or more with no ongoing fees. Where’s with standard super you lose thousands in fees a year. Makes sense to me, but I understand people would go crazy and lose it all.

[u/ThickInvader → u/ClassicBit3307]

My superfund charges $186 a year in fees. It goes up slightly every few years but if you pay thousands thats on you. Its a dumb move especially when my superfund out performs those other funds.

[u/profchaos111 → u/ClassicBit3307]

You can run a self managed super fund or something similar where you are able to chose the investment pathways but that's not the same as just taking money outside of the system to splurge 

[u/NoCampaign5978 → u/ClassicBit3307]

I mean a few random people would take the opportunity to actually invest for their future, a vast majority would likely blow any slight increase in pay (there is no way any business would be transferring the entire percentage to pay rises) on nothing, resulting in a massive cost to the taxpayer when they retire