In the new fiscal year, Australian workers’ compulsory retirement pension contributions will increase from 10 percent to 10.5 percent.
The growth will continue until it reaches 12% in 2025, boosting the already vast retirement fund industry, which currently manages the world’s fourth largest pension fund of around $ 3 trillion (US $ 2.05 trillion).
For some workers, this change allows employers to keep their wages and simply increase the amount they pay to their super accounts. For others, the difference may be to see their takeaway payments reduced by a forced contribution of 0.5 percent coming from their existing payment packets.
A further legislative amendment is the removal of the $ 450 / month minimum wage standard, which opens the door for part-time workers to receive supermarkets.
Forced aging in Australia is the legacy of Paul Keating, the former Prime Minister of the Left Labor Party, who established the system in 1992.
Super not without critics
Senator Andrew Bragg of New South Wales urged Australians to remove compulsory contributions altogether and give Australians the option to access existing funds to help pay for their first home purchase. ..
“Aging is a major failure of Australia’s economic policy. It doesn’t pull many people away from pensions, it costs more than it saves, and it reduces the choice of agents and individuals,” he said. statement May 25th.
Senators were also critical of superfunds that donated millions of dollars to the union.
“According to data from the Australian Election Commission (AEC), the Super Fund paid $ 12.9 million to the union in fiscal 2020-21, a new record, up from $ 11 million in the previous year.” He said in a statement on March 14.
The relationship between Labor Party, unions and major aging funds is close. In particular, organizations like Industry Super Australia are overseen by former Labor Ministers Wayne Swan and Greg Combet.
Meanwhile, economist Cameron Murray said the system did not bring any substantial benefit to the retirement of Australians.
“The first fundamental problem is that the system doesn’t provide an insurance component, which means that if you don’t have income in your life, you won’t get a supermarket when you retire,” he previously told The Epoch Times. Told. “In any case, if you get injured or get sick, you have to take care of your partner.”
Instead, Australia should invest in an age pension system that supports more individuals than a super system, he said.
“The supersystem is based on this idea that age pensions are somehow unsustainable, bad or unreliable,” he said, with an annual fee for old-age pensions (A $ 30 billion) and tax deductions (40 billion). AUD) said the total value was overwhelmed. “The cost of the age pension.