‘Hypocrisy’ in call to delay rise in super

COALITION backbenchers pushing the government to dump a promised increase in superannuation have been branded “hypocrites” for cashing in on a much higher rate of the scheme.

A growing chorus of MPs have argued that businesses cannot afford the legislated super rate increase from 9.5 per cent to 12 per cent by 2025, all the while benefiting from the federal public service rate of 14.5 per cent.

A worker earning $57,357 would get about $5449 in superannuation a year at the current rate, while a politician on the backbench with a base wage of $211,250 would get about $32,533 in super on the higher rate.

Industry Super Australia chief executive Bernie Dean said MPs pushing to freeze the 9.5 per cent rate were using coronavirus as a “cover” to “press gang” Prime Minister Scott Morrison.

“These MPs want to slash workers’ savings while feathering their own nest with lavish taxpayer-funded super contributions — this is big-time hypocrisy,” he said.

“The PM has got to side with the community and stick with his election promise (because) a delay or freeze to the super rate increase would lump millions more onto the pension.”

But Liberal Senator Andrew Bragg said it was an issue about the effect of increased superannuation payments on the private sector.

“This is a judgment about the private economy … we actually want to create more jobs and have higher wages,” he said.

“I more than welcome people to make submissions to cut politicians’ pay; I didn’t get into parliament for the perks.”

Mr Bragg said the superannuation scheme was “not working well” arguing it prevented people from being able to save for a home deposit.