Calls to cut politicians’ generous super packages

Most Australians feel pollies should not keep their generous super packages if an increase for the rest of the population was delayed.

Federal politicians on generous super packages should have their savings slashed if the Morrison Government delays or scraps a legislated increase for the rest of the population, Australians believe.

Research commissioned by Industry Super Australia shows more than half of all Australians thinks politicians’ contributions should be cut from 15.4 per cent to the standard 9.5 per cent if the expected rise does not go ahead.

The Super Guarantee for millions of Australians is legislated to rise from 9.5 per cent later this year before hitting 12 per cent in 2025.

While the federal government has not announced it will bin or delay the boost, Scott Morrison has flagged it was under consideration, with the economic impact of the coronavirus pandemic a key factor.

If the Morrison Government delays or scraps a legislated increase to super, many would like to see politicians’ super cut.

Industry Super Australia deputy chief executive Matt Linden said any move to delay the super boost was the “essence of hypocrisy” given the “good wicket” MPs were on.

“The community clearly sees through it – they can smell the hypocrisy a mile away,” he said.

“We know every time the super guarantee has been frozen workers have not got a magic wage rise.”

A spokesman for federal Superannuation Minister Jane Hume said the rise was still due to go ahead mid year.

“The government has always been cautious through the course of this pandemic to make decisions at a time when the information is at its best,” the spokesman said.

“This is an important decision, and one that will be made in light of all the evidence and in the economic circumstances of the time.”

Federal government backbencher Tim Wilson said he’d be “happy to have a higher salary” if his super rate was cut.

MP Tim Wilson is happy to have his super cut, if he gets a higher salary. Picture: Supplied

“Only Industry Super Australia could justify funding push polling from Australian’s super savings to convince them to take a pay cut and give politicians a pay rise,” the Victorian MP said.

“Super is forgone wages, so increasing super will cut take home pay, and cutting politicians' super will increase their take home pay by around $12,500 a year.”

In August, the Prime Minister said the rise needed careful consideration, noting Reserve Bank governor Philip Lowe had warned the lift could be bad for employment.

“Prior to the election it was certainly my view that those were legislated changes and increases and we had no plans to change any of those,” Mr Morrison said.

“COVID-19 has occurred, people’s jobs are at risk.

“That said, it is something the government has to carefully consider.”

@tamsinroses