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ISA responds to calls for SG freeze

Industry Super Australia has labeled a band of MPs "out of touch", after they called for increases to the super guarantee to be put on ice or scrapped completely.

Backbench coalition MPs have called for the legislated increase to the SG to be scrapped or frozen - a move ISA says would see a couple on average wages lose between $150,000 to $200,000 in retirement.

"These MPs are out of touch not only with the community but also with their leadership who have said time and time again that they support the staged increases in people's super that are locked in law," ISA chief executive Bernie Dean said.

"The Prime Minister and Treasurer wouldn't want to risk a generation of Australian workers being dumped on the pension to be their lasting legacy; they know we would all pay for that through higher taxes.

"Australians overwhelmingly support the rate going up slowly as the key to dignity in retirement, giving the average Australian worker choice and control on how they live their later years."

The short-sighted proposed hit on super would mean more Australians would be left languishing on the pension, causing Australians to pay higher taxes, particularly given many have now accessed their super early, ISA said.

"The backbenchers move to cut the increase is out touch with two thirds of Australians who a UMR poll found backed a steady increase to the super rate. And they are out of step with their PM, the Treasurer and Assistant Minister who have already publicly quashed their ideologically driven plans to cut Australian workers retirement savings," ISA said.

ISA also pointed out the MPs in questions are recipients of a 15% SG.

"They use the specious argument that an increase comes at the expense of wages, despite recent historic evidence showing there is no equal drop in wages when the super guarantee increases," ISA said.

"It was the same argument used to freeze the super guarantee in 2014, but wages have mostly flatlined since then - underlining the falseness of their arguments."

The claim that the recession is cause for a freeze was also rebuffed, with ISA saying there is evidence that the economic rebound following the 1991 recession coincided with an incremental but steady increase to the SG.

Read more: ISAIndustry Super Australia
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