Industry split over super guarantee as unions go in hard

Key stakeholders of industry funds Hostplus and AustralianSuper are split over the superannuation guarantee.

Hostplus director Tim Lyons. Picture: Nikki Davis-Jones

Key stakeholders of industry funds Hostplus and AustralianSuper are split over the superannuation guarantee, with unions hitting back at employers for endorsing the Morrison government’s review into whether next year’s increase to the rate should be delayed.

Hostplus director Tim Lyons, appointed to the fund’s board by the United Workers Union, said the increase to the rate due next July should “absolutely go ahead”.

His comments came after the Australian Hotels Association, which appoints employer representatives to the board of Hostplus, urged the Morrison government to delay the staged increase of the rate from 9.5 per cent to 12 per cent by 2025.

It is due to increase by 0.5 per cent next July.

“What you have got here is a government trying to vandalise a system designed for 30 and 40 years to deal with an issue that is about the next six months,” Mr Lyons said. “If anyone thinks that delaying the increase in the superannuation guarantee will result in an automatic pay rise for people, they have no understanding of what the economic literature says.

“The idea that if we delay this, everyone gets a 0.5 per cent pay rise is total bullshit.”

Mr Lyons said the AHA opposition to the increase next year was “evidence the employers will put that 0.5 per cent in their pocket”.

The ACTU, which appoints employee directors to the board of AustralianSuper, pushed back against the fund’s director and Australian Industry Group chief executive Innes Willox for endorsing the Morrison government’s decision to review the timing of the staged increase.

ACTU president Michele O’Neil said the Morrison government should “do the right thing for working people and the economy and stand by the already legislated increase”.

“Australian workers have lived through more than seven years of record low wage growth, which coincided with this government’s last decision to postpone increases in guaranteed super,” Ms O’Neil said.

“They have also seen unprecedented cuts to penalty rates which failed to create a single job.

“We know that taking money from working people does not create jobs or wage increases.

“This is a campaign by employer groups to pay working people less simply to increase profit margins.

“Delaying superannuation increase won’t result in higher wages — it will just result in less retirement savings.”