Super outlook grim
THE Morrison Government’s $60 billion Jobkeeper bungle is more than just a simple “administrative error”.
It is having real-life consequences for workers, particularly young Australians in regional Queensland left with no choice but to dip into their superannuation funds and support themselves during this unprecedented crisis.
Since the Government’s early access to super scheme was introduced, we have already seen 1.4 million Australians withdraw $13.2 billion from their retirement savings.
This compares with the $8.1 billion released under the JobKeeper payment and $5.3 billion under the Coronavirus Supplement.
What is concerning about these figures is they show government support came too late and excluded some workers.
In the short-term, although this support is necessary support, the scheme is expected to cost $1.1 billion in lost revenue.
In the long-term, it means fewer Australians will be able to afford to fund their retirement and will lead to a greater reliance on pensions.
Compulsory superannuation was established in 1992 precisely to avoid this.
This week, ATO figures also showed one-third of all early super applicants were under the age of 30 and more than half under the age of 35.
Young workers, particularly casuals employed for less than 12 months, have been left behind by this Government.
This will make the road to recovery much harder.
Youth employment always takes longer to bounce back after a recession, and the Government should be doing more to save every job it can.
This hasn’t happened in a vacuum. Townsville workers were already being shortchanged on superannuation, with Industry Super analysis showing 22,013 people in the electorate of Herbert were owed $55.1 million in unpaid super. Underpayments of compulsory superannuation have been problematic and the system itself is under attack by members of the Government, who have called it a “cancer” and a “rort”.
Ultimately, Queenslanders should seek advice before making decisions about withdrawing their super and I wouldn’t be taking advice from Liberals who want to scrap super altogether.
NITA GREEN, Queensland Labor Senator.